Who Are Better Learners?—Reducing Inefficiency in Laos’ Manufacturing Industry

10 Pages Posted: 14 Apr 2021

See all articles by Kana Haraguchi

Kana Haraguchi

Faculty of Economics

Souksavanh Vixathep

School of Economics and Management

Date Written: May 4, 2020

Abstract

The manufacturing industry plays a crucial role in the industrialization and catch-up processes in many developing countries. The learning—development of capabilities—of enterprises influences their innovation and capabilities to innovate, and thereby contributing to enterprise development, poverty alleviation, and economic development. This article examines to what extent learning and innovation activities affect efficiency performance of manufacturing firms in Laos, a developing country in Southeast Asia. The findings imply that continuous improvement in production, labor training and performance evaluation (separately or jointly), and process innovation activities enhance firm efficiency, and that product innovation is less appropriate for the current stage of Laos’ firms. These findings have some policy implications for human resource and enterprise development in Laos.

Keywords: Organizational learning, manufacturing, innovation, efficiency, Laos

JEL Classification: D21, C14

Suggested Citation

Haraguchi, Kana and Vixathep, Souksavanh, Who Are Better Learners?—Reducing Inefficiency in Laos’ Manufacturing Industry (May 4, 2020). Available at SSRN: https://ssrn.com/abstract=3815460

Kana Haraguchi (Contact Author)

Faculty of Economics ( email )

Japan

Souksavanh Vixathep

School of Economics and Management ( email )

Japan

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