Understanding factors for benchmarking adoption: New evidence from Malaysia

To explain the factors of benchmarking adoption as experienced by companies in Malaysia in which benchmarking is one of the way to create a sense of urgency by telling them where they are, how good they have to be, and what they have to do to get there.

Discriminant analysis was used to determine whether statistically significant differences exist between the average score profile on a set of variables for two a priori defined groups and so enabled them to be classified. Besides, it could help to determine which of the independent variables account the most for the differences in the average score profiles of the two groups. In this study, discriminant analysis was the main instrument to classify the benchmarking adopter and non‐adopter. It was also utilized to determine which of the independent variables would contribute to benchmarking adoption.

The finding from discriminant analysis revealed that employee participation was the most influential factors on benchmarking adoption, followed by top management commitment and role of quality department, whereas benchmarking limitation and customer orientation did not contribute significant impact on the adoptions.

One of the limitations of this study is that the conclusion drawn from the data is principally due to the variety of interpretations of what the term “benchmarking” actually means.

From an organization point of view, attention should be given to improve employee participation and quality department should play a proactive role in adopting benchmarking as a strategic tool.

This paper fulfils an identified information/resources need and offers practical help to an organization to promote the acceptance and implementation of benchmarking. Government body can therefore focus on these factors for further development of benchmarking.