Network Proximity and Business Practices in African Manufacturing

Patterns of correlation in innovation and contractual practices among manufacturing firms in Ethiopia and Sudan are documented. Network data that indicate whether any two firms in the utilized sample do business with each other, buy inputs from a c...

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Main Authors: Fafchamps, Marcel, Söderbom, Måns
Format: Policy Research Working Paper
Language:English
en_US
Published: World Bank, Washington, DC 2013
Subjects:
Online Access:http://documents.worldbank.org/curated/en/2013/06/17797582/
http://hdl.handle.net/10986/15606
id okr-10986-15606
recordtype oai_dc
spelling okr-10986-156062021-04-23T14:03:19Z Network Proximity and Business Practices in African Manufacturing Fafchamps, Marcel Söderbom, Måns BUSINESSES CAPACITY BUILDING CLERKS CODES COMPANY COMPETITORS COMPONENTS CORPORATIONS COVARIANCE MATRIX CUSTOM DEVELOPMENT ECONOMICS DIFFUSION OF INNOVATIONS DISPUTE RESOLUTION ECONOMIC ANALYSIS ECONOMIC DEVELOPMENT EMAIL ADDRESS EMPLOYMENT EMPLOYMENT GROWTH EQUIPMENT EXTERNALITIES FINANCIAL SUPPORT FIRM SIZE FIRMS HUMAN CAPITAL HUMAN RESOURCES INDUSTRIAL DEVELOPMENT INDUSTRIAL REVOLUTION INDUSTRIAL STRUCTURE INDUSTRY PRODUCTIVITY INFORMATION EXCHANGE INFORMATION TECHNOLOGY INNOVATION INNOVATIONS INTERNATIONAL TRADE JOB CREATION LABOR FORCE LABOR MANAGEMENT LABOR PRODUCTIVITY LEVELS OF USAGE MANUFACTURERS MANUFACTURING MATERIAL MICROENTERPRISES MISSING VALUES MULTIPLE EQUILIBRIA NETWORK DATA NETWORKS NEW TECHNOLOGIES NEW TECHNOLOGY NICHE MARKETS OPEN ACCESS ORGANIZATIONAL STRUCTURE PERFORMANCE INDICATORS POLITICAL ECONOMY PRIVATE SECTOR PRODUCTION PROCESS PRODUCTION PROCESSES PRODUCTIVITY PRODUCTIVITY GROWTH QUALITY MANAGEMENT R&D RESOURCE ALLOCATION RESULT RESULTS SPINOFF STORE SUPPLIER SUPPLIERS TECHNOLOGICAL CHANGE TECHNOLOGICAL INNOVATION TECHNOLOGY DIFFUSION TRAINING COURSE USES VALUE CHAIN WAGES WEB WEBSITE Patterns of correlation in innovation and contractual practices among manufacturing firms in Ethiopia and Sudan are documented. Network data that indicate whether any two firms in the utilized sample do business with each other, buy inputs from a common supplier, or sell output to a common client are used for the analysis. Only limited support is found for the commonly held idea that firms that are more proximate in a network sense are more likely to adopt similar practices. Indeed, for certain practices, adoption decisions appear to be local strategic substitutes: if one firm in a given location uses a certain practice, nearby firms are less likely to do so. These results suggest that the diffusion of technology and new business practices may play a more limited role in spurring growth in Africa's manufacturing sector than is often assumed in the present policy discussion. 2013-09-04T19:16:53Z 2013-09-04T19:16:53Z 2013-06 http://documents.worldbank.org/curated/en/2013/06/17797582/ http://hdl.handle.net/10986/15606 English en_US Policy Research Working Paper;No. 6474 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Africa Ethiopia Somalia
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic BUSINESSES
CAPACITY BUILDING
CLERKS
CODES
COMPANY
COMPETITORS
COMPONENTS
CORPORATIONS
COVARIANCE MATRIX
CUSTOM
DEVELOPMENT ECONOMICS
DIFFUSION OF INNOVATIONS
DISPUTE RESOLUTION
ECONOMIC ANALYSIS
ECONOMIC DEVELOPMENT
EMAIL ADDRESS
EMPLOYMENT
EMPLOYMENT GROWTH
EQUIPMENT
EXTERNALITIES
FINANCIAL SUPPORT
FIRM SIZE
FIRMS
HUMAN CAPITAL
HUMAN RESOURCES
INDUSTRIAL DEVELOPMENT
INDUSTRIAL REVOLUTION
INDUSTRIAL STRUCTURE
INDUSTRY PRODUCTIVITY
INFORMATION EXCHANGE
INFORMATION TECHNOLOGY
INNOVATION
INNOVATIONS
INTERNATIONAL TRADE
JOB CREATION
LABOR FORCE
LABOR MANAGEMENT
LABOR PRODUCTIVITY
LEVELS OF USAGE
MANUFACTURERS
MANUFACTURING
MATERIAL
MICROENTERPRISES
MISSING VALUES
MULTIPLE EQUILIBRIA
NETWORK DATA
NETWORKS
NEW TECHNOLOGIES
NEW TECHNOLOGY
NICHE MARKETS
OPEN ACCESS
ORGANIZATIONAL STRUCTURE
PERFORMANCE INDICATORS
POLITICAL ECONOMY
PRIVATE SECTOR
PRODUCTION PROCESS
PRODUCTION PROCESSES
PRODUCTIVITY
PRODUCTIVITY GROWTH
QUALITY MANAGEMENT
R&D
RESOURCE ALLOCATION
RESULT
RESULTS
SPINOFF
STORE
SUPPLIER
SUPPLIERS
TECHNOLOGICAL CHANGE
TECHNOLOGICAL INNOVATION
TECHNOLOGY DIFFUSION
TRAINING COURSE
USES
VALUE CHAIN
WAGES
WEB
WEBSITE
spellingShingle BUSINESSES
CAPACITY BUILDING
CLERKS
CODES
COMPANY
COMPETITORS
COMPONENTS
CORPORATIONS
COVARIANCE MATRIX
CUSTOM
DEVELOPMENT ECONOMICS
DIFFUSION OF INNOVATIONS
DISPUTE RESOLUTION
ECONOMIC ANALYSIS
ECONOMIC DEVELOPMENT
EMAIL ADDRESS
EMPLOYMENT
EMPLOYMENT GROWTH
EQUIPMENT
EXTERNALITIES
FINANCIAL SUPPORT
FIRM SIZE
FIRMS
HUMAN CAPITAL
HUMAN RESOURCES
INDUSTRIAL DEVELOPMENT
INDUSTRIAL REVOLUTION
INDUSTRIAL STRUCTURE
INDUSTRY PRODUCTIVITY
INFORMATION EXCHANGE
INFORMATION TECHNOLOGY
INNOVATION
INNOVATIONS
INTERNATIONAL TRADE
JOB CREATION
LABOR FORCE
LABOR MANAGEMENT
LABOR PRODUCTIVITY
LEVELS OF USAGE
MANUFACTURERS
MANUFACTURING
MATERIAL
MICROENTERPRISES
MISSING VALUES
MULTIPLE EQUILIBRIA
NETWORK DATA
NETWORKS
NEW TECHNOLOGIES
NEW TECHNOLOGY
NICHE MARKETS
OPEN ACCESS
ORGANIZATIONAL STRUCTURE
PERFORMANCE INDICATORS
POLITICAL ECONOMY
PRIVATE SECTOR
PRODUCTION PROCESS
PRODUCTION PROCESSES
PRODUCTIVITY
PRODUCTIVITY GROWTH
QUALITY MANAGEMENT
R&D
RESOURCE ALLOCATION
RESULT
RESULTS
SPINOFF
STORE
SUPPLIER
SUPPLIERS
TECHNOLOGICAL CHANGE
TECHNOLOGICAL INNOVATION
TECHNOLOGY DIFFUSION
TRAINING COURSE
USES
VALUE CHAIN
WAGES
WEB
WEBSITE
Fafchamps, Marcel
Söderbom, Måns
Network Proximity and Business Practices in African Manufacturing
geographic_facet Africa
Ethiopia
Somalia
relation Policy Research Working Paper;No. 6474
description Patterns of correlation in innovation and contractual practices among manufacturing firms in Ethiopia and Sudan are documented. Network data that indicate whether any two firms in the utilized sample do business with each other, buy inputs from a common supplier, or sell output to a common client are used for the analysis. Only limited support is found for the commonly held idea that firms that are more proximate in a network sense are more likely to adopt similar practices. Indeed, for certain practices, adoption decisions appear to be local strategic substitutes: if one firm in a given location uses a certain practice, nearby firms are less likely to do so. These results suggest that the diffusion of technology and new business practices may play a more limited role in spurring growth in Africa's manufacturing sector than is often assumed in the present policy discussion.
format Publications & Research :: Policy Research Working Paper
author Fafchamps, Marcel
Söderbom, Måns
author_facet Fafchamps, Marcel
Söderbom, Måns
author_sort Fafchamps, Marcel
title Network Proximity and Business Practices in African Manufacturing
title_short Network Proximity and Business Practices in African Manufacturing
title_full Network Proximity and Business Practices in African Manufacturing
title_fullStr Network Proximity and Business Practices in African Manufacturing
title_full_unstemmed Network Proximity and Business Practices in African Manufacturing
title_sort network proximity and business practices in african manufacturing
publisher World Bank, Washington, DC
publishDate 2013
url http://documents.worldbank.org/curated/en/2013/06/17797582/
http://hdl.handle.net/10986/15606
_version_ 1764429586086494208