Are Firm Capabilities Holding Back Firms in Mozambique?

Firm capabilities—the abilities and practices to operate and innovate—are considered important drivers of firm performance. While the analysis of their importance is well established in developed countries, its study in the African context is more...

Full description

Bibliographic Details
Main Authors: Aga, Gemechu, Campos, Francisco, Conconi, Adriana, Davies, Elwyn, Geginat, Carolin
Format: Working Paper
Language:English
Published: World Bank, Washington, DC 2021
Subjects:
Online Access:http://documents.worldbank.org/curated/en/284911625063784229/Are-Firm-Capabilities-Holding-Back-Firms-in-Mozambique
http://hdl.handle.net/10986/35895
id okr-10986-35895
recordtype oai_dc
spelling okr-10986-358952021-07-02T05:10:59Z Are Firm Capabilities Holding Back Firms in Mozambique? Aga, Gemechu Campos, Francisco Conconi, Adriana Davies, Elwyn Geginat, Carolin ENTERPRISE DEVELOPMENT FIRM CAPABILITY MANAGEMENT PRACTICES SMALL AND MEDIUM-SIZED ENTERPRISES FIRM PERFORMANCE INNOVATION Firm capabilities—the abilities and practices to operate and innovate—are considered important drivers of firm performance. While the analysis of their importance is well established in developed countries, its study in the African context is more recent. The paper uses a new representative sample of enterprises in Mozambique comprising data on management and organizational practices, as well as skills, to study the importance of firm capabilities in Mozambique. The analysis suggests that the private sector in Mozambique scores below other developing countries in all dimensions of firm capabilities. Enterprises engaging in more contractual relationships demonstrate stronger firm capabilities. Firm capabilities are key drivers of performance; controlling for other input factors, firms in Mozambique with better firm capabilities perform better. The relationship is robust to various measures of performance and to including various firm and manager characteristics. The analysis finds that for smaller firms, non-exporters, and female-owned enterprises, their gap in business performance can be explained by differences in management practices. The results suggest Mozambique should explore mechanisms of expanding firm capabilities in targeted types of firms. 2021-07-01T16:19:04Z 2021-07-01T16:19:04Z 2021-06 Working Paper http://documents.worldbank.org/curated/en/284911625063784229/Are-Firm-Capabilities-Holding-Back-Firms-in-Mozambique http://hdl.handle.net/10986/35895 English Policy Research Working Paper;No. 9724 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Africa Africa Eastern and Southern (AFE) Mozambique
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic ENTERPRISE DEVELOPMENT
FIRM CAPABILITY
MANAGEMENT PRACTICES
SMALL AND MEDIUM-SIZED ENTERPRISES
FIRM PERFORMANCE
INNOVATION
spellingShingle ENTERPRISE DEVELOPMENT
FIRM CAPABILITY
MANAGEMENT PRACTICES
SMALL AND MEDIUM-SIZED ENTERPRISES
FIRM PERFORMANCE
INNOVATION
Aga, Gemechu
Campos, Francisco
Conconi, Adriana
Davies, Elwyn
Geginat, Carolin
Are Firm Capabilities Holding Back Firms in Mozambique?
geographic_facet Africa
Africa Eastern and Southern (AFE)
Mozambique
relation Policy Research Working Paper;No. 9724
description Firm capabilities—the abilities and practices to operate and innovate—are considered important drivers of firm performance. While the analysis of their importance is well established in developed countries, its study in the African context is more recent. The paper uses a new representative sample of enterprises in Mozambique comprising data on management and organizational practices, as well as skills, to study the importance of firm capabilities in Mozambique. The analysis suggests that the private sector in Mozambique scores below other developing countries in all dimensions of firm capabilities. Enterprises engaging in more contractual relationships demonstrate stronger firm capabilities. Firm capabilities are key drivers of performance; controlling for other input factors, firms in Mozambique with better firm capabilities perform better. The relationship is robust to various measures of performance and to including various firm and manager characteristics. The analysis finds that for smaller firms, non-exporters, and female-owned enterprises, their gap in business performance can be explained by differences in management practices. The results suggest Mozambique should explore mechanisms of expanding firm capabilities in targeted types of firms.
format Working Paper
author Aga, Gemechu
Campos, Francisco
Conconi, Adriana
Davies, Elwyn
Geginat, Carolin
author_facet Aga, Gemechu
Campos, Francisco
Conconi, Adriana
Davies, Elwyn
Geginat, Carolin
author_sort Aga, Gemechu
title Are Firm Capabilities Holding Back Firms in Mozambique?
title_short Are Firm Capabilities Holding Back Firms in Mozambique?
title_full Are Firm Capabilities Holding Back Firms in Mozambique?
title_fullStr Are Firm Capabilities Holding Back Firms in Mozambique?
title_full_unstemmed Are Firm Capabilities Holding Back Firms in Mozambique?
title_sort are firm capabilities holding back firms in mozambique?
publisher World Bank, Washington, DC
publishDate 2021
url http://documents.worldbank.org/curated/en/284911625063784229/Are-Firm-Capabilities-Holding-Back-Firms-in-Mozambique
http://hdl.handle.net/10986/35895
_version_ 1764484051734888448