From knowledge to action: the impact of benchmarking on organizational performance

Abstract

Benchmarking seeks out, internalizes and improves upon competitors' best-practice capabilities. This article presents results of a research study into benchmarking and its links to improvements in organizational performance. The discussion begins with a review of the strategic issues relevant to benchmarking: imitative strategy, first-mover advantage, resource-based theory, innovation, knowledge management and organizational learning. Assumptions are subsequently developed and tested against a database of information from North American firms in many different sectors. Insights are derived about the effectiveness of different benchmarking approaches. The results reveal that benchmarking can actually generate broadly-based change in organizational thinking and action.