Publication: "Learning by Dining" : Informal Networks and Productivity in Mexican Industry
Date
2002-02
ISSN
Published
2002-02
Author(s)
Abstract
The authors analyze the determinants of
firm productivity in a group of Mexican firms. In
particular, they test the contribution of external factors
such as trade and knowledge diffusion, the availability of
infrastructure, informal knowledge exchange, competitive
environment, and business regulatory climate. The authors
find that one factor consistently emerges as an important
proximate source of productivity-access to informal
networks. Interaction in the form of "business
lunches" with local buyers and suppliers, competitors,
government officials, and other professionals have a
significant and positive effect on a firm's
productivity. Access to regulators and agents of backward
and forward linkages are important in settings where
information on business practices and regulations is not
publicly disclosed. The results complement predictions of
traditional growth theory-in addition to technology and
learning being the driving force of firm productivity,
proximity to influential individuals who can grant favors or
provide information advantage on business and trade
practices have significant productivity impacts.
Citation
“Lall, Somik V.; Ghosh, Sudeshna. 2002. "Learning by Dining" : Informal Networks and Productivity in Mexican Industry. Policy Research Working Paper;No. 2789. © World Bank, Washington, DC. http://hdl.handle.net/10986/15612 License: CC BY 3.0 IGO.”
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