Contemporary Management Tools in Developing Countries: The Case of Uzbekistan

Modern management techniques like strategic planning, the Balanced Scorecard, ISO 9001 quality management, and enterprise resource planning (ERP) systems are utilized by many businesses in developing nations, but these techniques rarely result in an increase in productivity. Using Uzbekistan as an example, this paper investigates the reason and asks how such tools should be implemented. It uses data from the Management Tools & Trends survey conducted by Bain & Company, the World Management Survey, the 2008–2009 EBRD–World Bank Management, Organization, and Innovation survey, the 2024 World Bank Enterprise Survey of 1,008 Uzbek businesses, and Uzbek law. The evidence points to a gap between adopting tools and managing well. Companies in emerging economies score lower on measured management quality, despite managers in Asia-Pacific reporting using approximately twice as many tools as managers in North America. Uzbekistan ranked last of twelve countries in 2008–2009 and scored 39.0 out of 100 on the World Bank's 2024 management practices index, compared with 52.9 for Europe and Central Asia. When it comes to performance-based bonuses and promotions, Uzbek businesses match or exceed the regional average. However, when it comes to monitoring performance, setting goals, and dealing with employees who aren't performing to their potential, Uzbek businesses lag far behind. This suggests that many of the tools are used in theory rather than in practice. As a result, the paper proposes a three-step process: first, basic practices like performance monitoring, target setting, and management accounting; second, data-based tools like the Balanced Scorecard and quality management once reliable data, documented processes, and trained staff are present; and third, advanced digital tools as competition and specialist skills grow. It comes to an end with ramifications for businesses, the government, and business education.