Implementation of benchmarking concepts in Indian automobile industry – an empirical study

Abstract

Purpose – This paper aims to present existence comprehensive analysis of state of implementation of benchmarking concepts in Indian automotive companies. Design/methodology/approach – The research is carried out through a mixed method of research approach comprising of a survey of 300 auto companies in India. Out of 300, 48 valid responses together with three additional case studies were used in the data analysis. Inclusion of case studies was aspired to get deeper insight into the issues pertaining to adoption of best practices, and subsequently the implementation of benchmarking activities. Findings – Benchmarking has been unanimously accepted as an effective performance and productivity improvement tool by Indian auto companies. However, Indian automobile manufacturers still see benchmarking as a tool to compare product attributes, quality attributes, operations, and processes. Moreover, it has been perceived as being less applicable at strategic level. Results also show that benchmarking is in its primary stage in the Indian automotive industry, and it still needs much more commitment from top management for its proliferation. Lesser significance is given to competitor benchmarking due to the fear of losing competitive advantage, and the problem of confidentiality. Reasons identified in this study for not using benchmarking include “lack of human resources” as most important, followed by “financial constraints”, and “lack of internal expertise”. Research limitations/implications – Research results should be generalized and reproduced with a larger sample size. Owing to the scarce application of benchmarking in small and medium enterprises (SMEs), separate study should be carried out to find ways to encourage benchmarking implementation in Indian auto component manufacturing SMEs. Originality/value – The paper provides insight into the extent of implementation of benchmarking concepts in Indian automobile industry. This study is the first attempt to understand propagation of benchmarking concepts, exclusively among Indian auto companies.