Differences in Management Practices and Productivity in Micro and Small Enterprises in Industrial Clusters

In recent years, several randomized controlled experiments as well as experiments that are not randomized have been conducted to assess the impacts of management training intervention on the productivity and other aspects of business performance of firms. Yet the role played by management improvement vis-à-vis that of technology transfer or borrowing in industrial development remains unclear. This paper attempts to narrow this gap by developing a heuristic model and reviewing experimental studies of management training and case studies of Micro and Small Enterprises (MSEs) in cluster-based industrial development. The paper argues among other things that the improvement of management provides the basis for successful technology transfer.