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

Leonardo Iacovone, David McKenzie and William F. Maloney

No 11278, Policy Research Working Paper Series from The World Bank

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.

Date: 2026-01-07
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