The propagation of benchmarking concepts in Indian manufacturing industry

Abstract

PurposeThe purpose of this paper is to examine the propagation of benchmarking concepts among Indian manufacturing companies after liberalization of Indian economy.Design/methodology/approachTo determine the propagation of benchmarking concepts in the Indian manufacturing sector, first, a postal survey was conducted on 500 Indian manufacturing companies. Only 97 companies participated in the survey. Subsequently, interviews with 20 managers of six manufacturing companies were undertaken.FindingsResearch showed that benchmarking in Indian manufacturing sector is still in the nascent stage, but there is a positive attitude towards adoption of benchmarking concepts. The industry sectors, which typically show above average levels of benchmarking activity, are motor vehicle, electric and electronic industries. By contrast, it is the process sectors, which record the lowest incidences of benchmarking. Identification of suitable benchmarking partner was considered to be the most important problem among Indian manufacturing companies.Research limitations/implicationsA limitation of research is the number of respondents, which precludes the generalization of findings.Practical implicationsThe study can help managers of manufacturing companies understand the problems and inhibitors to successful benchmarking.Originality/valueThe paper provides an attempt to find out propagation of benchmarking concepts in Indian context. The paper should be of interest to those researching or managing in the Indian manufacturing sector. This is one of the first studies on dissemination of benchmarking in developing countries and should encourage further research in these countries.