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Group Consulting Continues to Benefit Firms after a Decade : Experimental Evidence from Colombian Auto Parts Firms

Author

Listed:
  • Iacovone, Leonardo
  • McKenzie, David
  • Maloney, William F.

Abstract

A randomized experiment tested the effectiveness of individual and small group–based consulting services on firms in the Colombian auto parts industry, finding improvements in management and firm performance over three to four years. This paper uses administrative data to track these firms for up to a decade. Firms in the group consulting intervention are more likely to survive, have higher employment, and have increased sales and profits by approximately 50 percent. This longer-term growth appears to in part come through increased exporting as well as persistent management improvements. The more expensive individual consulting has smaller and not statistically significant long-run impacts.

Suggested Citation

  • Iacovone, Leonardo & McKenzie, David & Maloney, William F., 2026. "Group Consulting Continues to Benefit Firms after a Decade : Experimental Evidence from Colombian Auto Parts Firms," Policy Research Working Paper Series 11278, The World Bank.
    • Handle: RePEc:wbk:wbrwps:11278
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    References listed on IDEAS

    as
    1. Miriam Bruhn & Dean Karlan & Antoinette Schoar, 2018. "The Impact of Consulting Services on Small and Medium Enterprises: Evidence from a Randomized Trial in Mexico," Journal of Political Economy, University of Chicago Press, vol. 126(2), pages 635-687.
    2. Jiafeng Chen & Jonathan Roth, 2024. "Logs with Zeros? Some Problems and Solutions," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 139(2), pages 891-936.
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