This paper investigates the impact of management training programs on garment clusters in Vietnam and Tanzania. The study found that in the medium run firms showed improvement once they had identified useful practices and adapted them to their operations. Although it takes a few years to experience a significant impact on incomes, management training can increase not just management scores but also incomes or value added.
Management score, or the number of good practices adopted by a firm. The score was constructed based on enumerators’ visual inspection and personal interviews with the owners of the sample firms.
In both sites, the treatment and control groups share about the same scores in the baseline, but their scores diverged from the first follow-up survey onwards. The control group’s average score increased from the baseline through the second follow-up survey, suggesting that there were knowledge spillovers from the treatment group to the control group. In Tanzania, the management scoresat the third follow-up survey were lower than at the second, indicating that the firms stopped using some practices that they had adopted earlier.