An empirical study on relationships amongst success in benchmarking, success in Kaizen, people mindset and organizational dimensions

The purpose of this paper is to examine factors that most strongly influence success in benchmarking as attempted by Indonesian manufacturers and service companies. It investigates the impacts of success in Kaizen, people mindset and organizational dimensions with success in benchmarking.

A total of 100 questionnaires were distributed to senior managers at an 87 percent response rate.

This study reveals that success in benchmarking that companies undertake correlates positively with their success in Kaizen, people mindset and organizational dimensions.

As an empirical study, this work has some limitations that need to be recognized. First, the sample only includes Indonesian companies. Second, as the small sample size resulted in only indicative outcome, more research is needed in this area. Furthermore, there may also have been other factors affecting success in benchmarking. It is, therefore, recommended that the framework be extended to include more variables such as information-technology competency, company status (being a single or group company) and to use other methodologies, such as multiple regression.

A company can achieve success in benchmarking through implementing success in kaizen, people mindset, formalization, centralization and integration. Industry-wise, formalization and centralization are the variables that impact the success in benchmarking significantly. For services companies, formalization and centralization is the significant variable affecting, whereas, for manufacturing companies success in Kaizen is the significant variable for success in benchmarking. Therefore, for services companies, having documented and implementation policies, regulations and procedures will influence success in benchmarking. The involvement of the top management, budgeting for every functions and unit performance evaluation will result in success in benchmarking. On the other hand, top management commitment and worker involvement are necessary to drive success in Kaizen in manufacturing companies.

Unlike most of the previous studies on a manufacturing company, this paper examines both manufacturing and services companies especially in Indonesia.