Framework and determinants of benchmarking: a theoretical analysis and case study in Vietnam

Introduction: The research article was accepted to be published in the scientific journal: International Journal of Emerging Markets belonging to the leading publisher Emerald Publishing, the journal is ranked Q1 in the SCOPUS scientific database directory with Impact Factor index 2.7 and CiteScore 5.6, is one of the leading journals publishing rigorous theoretical and empirical research on emerging markets from multidisciplinary (economics, finance, marketing and management) and multidisciplinary perspectives. geographical country.

The principal goal of a nation and a firm is to produce high and rising income and living standards on a sustainable basis, while being and remaining competitive in the international markets. The ability to obtain the goal depends on how to sustainably maximize the productivity and efficiency of resources (Porter, 1990; Hoang and Tran, 2019). The key issue in both practice and theory is to assess and improve the performance of nations and firms (Hoang et al., 2017). At the firm level, the combination of total quality management and benchmarking determines the key elements of firms’ competitiveness (Zairi, 1994b). Benchmarking has been increasingly used as a vital tool to help do self-assessment,identify the best practice and recognize areas for improvement. It is acknowledged as one of the best methods for improving the quality, measuring the performance and enhancing the competitiveness of firms (Voss et al., 1994; Hong et al., 2012; Jacobs et al., 2004).
The main goal of benchmarking is to enhance the competitive ranks of nations, industries and organizations through internal and external knowledge, combining the best in gaining superiority (Kovacic, 2007). The benefit of benchmarking can be multiplied if it is combined with other tools such as 5S, TQM, Six Sigma, Lean, JIT and TPM (Cua et al., 2001; Swink and Jacobs, 2012). Benchmarking can be perceived as a continuous process of identifying superior performance, comparing firms’ performance, emulating the best to introduce change, aspiring for superior performance standards and trying the best to learn and achieve these standards (Zairi, 1994a; APICS, 1998). However, barriers may handicap the pursuit of best practices and reduce the effectiveness of benchmarking (Williams et al., 2012). The benchmarking scholars and practitioners are mainly interested in developing and measuring benchmarking indicators while there is a shortage of attention to identifying the barriers and the success factors of benchmarking.

Purpose – This study aims to develop a benchmarking model with productivity, management, and sustainability indicators (PMS), measure the performance of furniture firms in Vietnam, explore the causes of performance gaps, and identify the barriers and factors of benchmarking practice.
Design/methodology/approach – The article uses both qualitative and quantitative methods. Literature review, exploratory interviews and a grounded-theory process are employed to develop a benchmarking framework and identify performance gaps, barriers and factors of benchmarking practice. The PMS benchmarking model and quantitative analysis are utilized to assess performance indicators.
Findings – The study proposes the PMS benchmarking model and measures performance indicators of furniture firms. The sources of performance gaps are explored as design, material supply, the economy of scale, market, management systems and openness. Benchmarking practice encounters barriers of difficult indicators, unsuitable firms, insufficient benchmarking knowledge, reluctance to share data, unavailable and unreliable data, and weak engagement. Benchmarking practice is determined by core factors: leader; internal factors: systems, engagement, strategy, scope, culture; external factors: customers, suppliers, associations, support, competition.
Practical implications – Firms could learn benchmarking indicators and the causes of these gaps to improve their performance. When implementing a benchmarking study, scholars and practitioners need to pay attention to barriers and factors of the benchmarking practice to ensure effective results.
Originality/value – This study develops the PMS benchmarking model and estimates performance indicators in an emerging country with the performance gap justification. It provides readers with benchmarking barriers with solutions and success factors of benchmarking practice.

Find out more:

Hoang, V., Nguyen, K.-D. and Nguyen, H.-L. (2023), "Framework and determinants of benchmarking: a theoretical analysis and case study in Vietnam", International Journal of Emerging Markets, Vol. 18 No. 10, pp. 4651-4668. https://doi.org/10.1108/IJOEM-04-2021-0553