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Willingness to pay for managerial training: A case from the knitwear industry in Northern Vietnam

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  • Suzuki, Aya
  • Vu, Hoang Nam
  • Sonobe, Tetsushi
Abstract
Managerial capital has received attention in recent years as one of the major determinants for enterprise productivity, growth, and longevity. While recent empirical studies make it clear that training intervention can improve the management level, it remains unclear why the managers had not made efforts to obtain these basic knowledge. To test the hypothesis that the reason lies in low valuation for obtaining knowledge, we conduct experimental training programs for the managers of SMEs in a knitwear cluster in rural town in Vietnam. We find that the demand for these training was indeed low prior to training, but increased greatly with own learning experience, and that those with a higher prior demand tended to benefit more from the training.

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  • Suzuki, Aya & Vu, Hoang Nam & Sonobe, Tetsushi, 2014. "Willingness to pay for managerial training: A case from the knitwear industry in Northern Vietnam," Journal of Comparative Economics, Elsevier, vol. 42(3), pages 693-707.
    • Handle: RePEc:eee:jcecon:v:42:y:2014:i:3:p:693-707
    DOI: 10.1016/j.jce.2013.07.001
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    Cited by:

    1. Chau Le & Bach Nguyen & Vinh Vo, 2024. "Do intangible assets help SMEs in underdeveloped markets gain access to external finance?—the case of Vietnam," Small Business Economics, Springer, vol. 62(2), pages 833-855, February.
    2. Higuchi, Yuki & Nam, Vu Hoang & Sonobe, Tetsushi, 2015. "Sustained impacts of Kaizen training," Journal of Economic Behavior & Organization, Elsevier, vol. 120(C), pages 189-206.
    3. Mckenzie,David J., 2020. "Small Business Training to Improve Management Practices in Developing Countries: Reassessingthe Evidence for 'Training Doesn’t Work'," Policy Research Working Paper Series 9408, The World Bank.
    4. Tetsushi Sonobe & Yuki Higuchi & Keijiro Otsuka, 2014. "Differences in Management Practices and Productivity in Micro and Small Enterprises in Industrial Clusters," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 5(02), pages 1-23.
    5. Vuong Quan Hoang & La Viet Phuong & Vuong Thu Trang & Hoang Phuong Hanh & Ho Manh Toan & Ho Manh Tung & Nguyen Hong Kong To, 2020. "Multi-faceted insights of entrepreneurship facing a fast-growing economy: A literature review," Open Economics, De Gruyter, vol. 3(1), pages 25-41, January.
    6. Tetsushi Sonobe & Yuki Higuchi & Keijiro Otsuka, 2012. "Productivity Growth and Job Creation in the Development Process of Industrial Clusters," GRIPS Discussion Papers 11-22, National Graduate Institute for Policy Studies.
    7. Bando, Rosangela & Li, Xia, 2014. "The Effect of In-Service Teacher Training on Student Learning of English as a Second Language," IDB Publications (Working Papers) 6596, Inter-American Development Bank.
    8. Vuong, Quan-Hoang & La, Viet-Phuong & Ho, Manh-Toan & Vuong, Thu-Trang & Hoang, Hanh Phuong, 2019. "What have Vietnamese scholars learned from researching entrepreneurship?: A systematic review," OSF Preprints uhwmn, Center for Open Science.
    9. Suzuki, Aya & Igei, Kengo, 2017. "Can Efficient Provision of Business Development Services Bring Better Results for SMEs?: Evidence from a Networking Project in Thailand," Working Papers 147, JICA Research Institute.
    10. Rosangela Bando & Xia Li, 2014. "The Effect of In-Service Teacher Training on Student Learning of English as a Second Language," IDB Publications (Working Papers) 86173, Inter-American Development Bank.
    11. Go Shimada & Tetsushi Sonobe, 2021. "Impacts of management training on workers: Evidence from Central America and the Caribbean region," Review of Development Economics, Wiley Blackwell, vol. 25(3), pages 1492-1514, August.
    12. Keijiro Otsuka, 2020. "Strategy for Cluster-Based Industrial Development in Developing Countries," Discussion Papers 2019, Graduate School of Economics, Kobe University.
    13. Go Shimada & Tetsushi Sonobe, 2018. "Impacts of Kaizen Management on Workers: Evidence from Central America and the Caribbean Region," Working Papers 173, JICA Research Institute.

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    More about this item

    Keywords

    Managerial training; Randomized experiment; Impact evaluation; Industrial cluster; Vietnam;
    All these keywords.

    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management
    • M53 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Training

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