Abstract
More recent survey‐based studies have indicated that, although many companies are involved in benchmarking, adoption of best practices is not as high as might be expected. This study was undertaken to identify the factors that have an impact on the adoption decision of manufacturing best practices. A review of the relevant literature identified ten potential factors. These can be classified into three categories: best practice factors, organizational factors, and environmental factors. Best practice factors include codification, complexity, compatibility, perceived operational benefits, and cost. Organizational factors include satisfaction with the existing practice, existence of champion, and organizational resource availability. Finally, environmental factors include perceived outside support and external pressures. The results indicated that cost of adoption, external pressures, and satisfaction with the existing practice are the main determinants of the adoption decision. These results should be of considerable interest to practitioners.
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