Organizing Knowledge to Compete : Impacts of Capacity Building Programs on Firm Organization
A growing literature aiming at explaining differences across firms in productivity and access to global export markets has focused on the internal organization of firms. This paper contributes to this literature by evaluating the impact of a progra...
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| Format: | Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2016
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| Online Access: | http://documents.worldbank.org/curated/en/2016/04/26224155/organizing-knowledge-compete-impacts-capacity-building-programs-firm-organization http://hdl.handle.net/10986/24214 |
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okr-10986-242142021-04-23T14:04:20Z Organizing Knowledge to Compete : Impacts of Capacity Building Programs on Firm Organization Cruz, Marcio Bussolo, Maurizio Iacovone, Leonardo SKILLS LIMITED EMPLOYMENT EXPORT MARKETS AVERAGE COSTS EXTENSIONISTS CORPORATION PRODUCTION LAGS MARGINAL COST OF PRODUCTION SUNK COSTS PREVIOUS SECTION STOCK ANATOMY GOVERNMENT MARGINAL COST INTEREST RATE INFORMATION SERVICES PREVIOUS DISCUSSION POLITICAL ECONOMY COMPANIES JOB INCENTIVES REORGANIZATION DISTRIBUTION CAPACITY BUILDING VARIABLES INPUTS ASSOCIATIONS CENTRAL BANK KNOWLEDGE PRODUCTION PROCESS SMALL BUSINESS PLANTS STATES TECHNICAL ASSISTANCE EXOGENOUS SHOCKS CEO DEVELOPMENT ECONOMICS ACQUISITION PROXY WORKER PRODUCTS PRODUCTIVITY ECONOMETRIC MODELS CRITERIA MARKETING MARKETS ORGANIZATIONS HUMAN RESOURCES MANAGEMENT RESEARCH EXTENSION LABOR LABOR REGULATION ECONOMIC RESEARCH DIRECTORS PREVIOUS SUBSECTION TECHNOLOGY MANAGERS AVERAGE WAGES R&D HUMAN CAPITAL CEOS WORKERS WAGES INTERNATIONAL TRADE OWNERSHIP STRUCTURE PRODUCTION WORKERS REAL WAGE FAMILY SUBSIDIARIES WAGE INEQUALITY VALUE AVERAGE WAGE GENDER COMPETITIVENESS BANK KNOWLEDGE ACQUISITION CLERKS PARTNERSHIP PATENTS OCCUPATIONS OCCUPATION ASSOCIATION AGRICULTURE A growing literature aiming at explaining differences across firms in productivity and access to global export markets has focused on the internal organization of firms. This paper contributes to this literature by evaluating the impact of a program that focuses on enhancing competitiveness of small and medium enterprises in Brazil by providing coaching and consulting on management and production practices. Specifically, the paper tests whether the program induces treated firms to reorganize knowledge by adding more layers of different skills and competencies to their workforces. Using a unique firm-level dataset, the number of layers of the firms are compared before and after the program. The impact of the program is identified by relying on an instrumental variable approach, exploiting the quasi-experiment roll-out of its implementation, which was carried out at different times across Brazilian regions. The analysis finds that the program had an effect and that this effect is heterogeneous. The program is particularly effective in promoting the reorganization of firms with initially fewer layers. The results confirm another finding of the literature, namely that in re-organized firms inequality of wages increases, as firms pay higher wages in added higher layers than in pre-existing ones. Finally, these results are used to discuss how the change in firms' organization is positively correlated with export performance. 2016-05-04T18:31:52Z 2016-05-04T18:31:52Z 2016-04 Working Paper http://documents.worldbank.org/curated/en/2016/04/26224155/organizing-knowledge-compete-impacts-capacity-building-programs-firm-organization http://hdl.handle.net/10986/24214 English en_US Policy Research Working Paper;No. 7640 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Latin America & Caribbean Brazil |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
SKILLS LIMITED EMPLOYMENT EXPORT MARKETS AVERAGE COSTS EXTENSIONISTS CORPORATION PRODUCTION LAGS MARGINAL COST OF PRODUCTION SUNK COSTS PREVIOUS SECTION STOCK ANATOMY GOVERNMENT MARGINAL COST INTEREST RATE INFORMATION SERVICES PREVIOUS DISCUSSION POLITICAL ECONOMY COMPANIES JOB INCENTIVES REORGANIZATION DISTRIBUTION CAPACITY BUILDING VARIABLES INPUTS ASSOCIATIONS CENTRAL BANK KNOWLEDGE PRODUCTION PROCESS SMALL BUSINESS PLANTS STATES TECHNICAL ASSISTANCE EXOGENOUS SHOCKS CEO DEVELOPMENT ECONOMICS ACQUISITION PROXY WORKER PRODUCTS PRODUCTIVITY ECONOMETRIC MODELS CRITERIA MARKETING MARKETS ORGANIZATIONS HUMAN RESOURCES MANAGEMENT RESEARCH EXTENSION LABOR LABOR REGULATION ECONOMIC RESEARCH DIRECTORS PREVIOUS SUBSECTION TECHNOLOGY MANAGERS AVERAGE WAGES R&D HUMAN CAPITAL CEOS WORKERS WAGES INTERNATIONAL TRADE OWNERSHIP STRUCTURE PRODUCTION WORKERS REAL WAGE FAMILY SUBSIDIARIES WAGE INEQUALITY VALUE AVERAGE WAGE GENDER COMPETITIVENESS BANK KNOWLEDGE ACQUISITION CLERKS PARTNERSHIP PATENTS OCCUPATIONS OCCUPATION ASSOCIATION AGRICULTURE |
| spellingShingle |
SKILLS LIMITED EMPLOYMENT EXPORT MARKETS AVERAGE COSTS EXTENSIONISTS CORPORATION PRODUCTION LAGS MARGINAL COST OF PRODUCTION SUNK COSTS PREVIOUS SECTION STOCK ANATOMY GOVERNMENT MARGINAL COST INTEREST RATE INFORMATION SERVICES PREVIOUS DISCUSSION POLITICAL ECONOMY COMPANIES JOB INCENTIVES REORGANIZATION DISTRIBUTION CAPACITY BUILDING VARIABLES INPUTS ASSOCIATIONS CENTRAL BANK KNOWLEDGE PRODUCTION PROCESS SMALL BUSINESS PLANTS STATES TECHNICAL ASSISTANCE EXOGENOUS SHOCKS CEO DEVELOPMENT ECONOMICS ACQUISITION PROXY WORKER PRODUCTS PRODUCTIVITY ECONOMETRIC MODELS CRITERIA MARKETING MARKETS ORGANIZATIONS HUMAN RESOURCES MANAGEMENT RESEARCH EXTENSION LABOR LABOR REGULATION ECONOMIC RESEARCH DIRECTORS PREVIOUS SUBSECTION TECHNOLOGY MANAGERS AVERAGE WAGES R&D HUMAN CAPITAL CEOS WORKERS WAGES INTERNATIONAL TRADE OWNERSHIP STRUCTURE PRODUCTION WORKERS REAL WAGE FAMILY SUBSIDIARIES WAGE INEQUALITY VALUE AVERAGE WAGE GENDER COMPETITIVENESS BANK KNOWLEDGE ACQUISITION CLERKS PARTNERSHIP PATENTS OCCUPATIONS OCCUPATION ASSOCIATION AGRICULTURE Cruz, Marcio Bussolo, Maurizio Iacovone, Leonardo Organizing Knowledge to Compete : Impacts of Capacity Building Programs on Firm Organization |
| geographic_facet |
Latin America & Caribbean Brazil |
| relation |
Policy Research Working Paper;No. 7640 |
| description |
A growing literature aiming at
explaining differences across firms in productivity and
access to global export markets has focused on the internal
organization of firms. This paper contributes to this
literature by evaluating the impact of a program that
focuses on enhancing competitiveness of small and medium
enterprises in Brazil by providing coaching and consulting
on management and production practices. Specifically, the
paper tests whether the program induces treated firms to
reorganize knowledge by adding more layers of different
skills and competencies to their workforces. Using a unique
firm-level dataset, the number of layers of the firms are
compared before and after the program. The impact of the
program is identified by relying on an instrumental variable
approach, exploiting the quasi-experiment roll-out of its
implementation, which was carried out at different times
across Brazilian regions. The analysis finds that the
program had an effect and that this effect is heterogeneous.
The program is particularly effective in promoting the
reorganization of firms with initially fewer layers. The
results confirm another finding of the literature, namely
that in re-organized firms inequality of wages increases, as
firms pay higher wages in added higher layers than in
pre-existing ones. Finally, these results are used to
discuss how the change in firms' organization is
positively correlated with export performance. |
| format |
Working Paper |
| author |
Cruz, Marcio Bussolo, Maurizio Iacovone, Leonardo |
| author_facet |
Cruz, Marcio Bussolo, Maurizio Iacovone, Leonardo |
| author_sort |
Cruz, Marcio |
| title |
Organizing Knowledge to Compete : Impacts of Capacity Building Programs on Firm Organization |
| title_short |
Organizing Knowledge to Compete : Impacts of Capacity Building Programs on Firm Organization |
| title_full |
Organizing Knowledge to Compete : Impacts of Capacity Building Programs on Firm Organization |
| title_fullStr |
Organizing Knowledge to Compete : Impacts of Capacity Building Programs on Firm Organization |
| title_full_unstemmed |
Organizing Knowledge to Compete : Impacts of Capacity Building Programs on Firm Organization |
| title_sort |
organizing knowledge to compete : impacts of capacity building programs on firm organization |
| publisher |
World Bank, Washington, DC |
| publishDate |
2016 |
| url |
http://documents.worldbank.org/curated/en/2016/04/26224155/organizing-knowledge-compete-impacts-capacity-building-programs-firm-organization http://hdl.handle.net/10986/24214 |
| _version_ |
1764455948412256256 |