Best practices for the effectiveness of benchmarking in the Indonesian manufacturing companies

Abstract

PurposeThe purpose of this paper is to examine best practices that contribute to the effectiveness of benchmarking in Indonesian manufacturing industries.Design/methodology/approachA total of 250 questionnaires are distributed to representatives of the Badan Pengelola Industri Strategis (BPIS) registered companies, specifically to the quality managers or production managers that are involved in the benchmarking process in companies.FindingsIn total, 155 responded to the questionnaire; that gives a response rate of 51.67 percent. Analysis of the data has shown that some benchmarking practices, e.g. the manufacturing process, and organizational and environmental factors do significantly influence the effectiveness of benchmarking.Research limitations/implicationsFurther study needs to be undertaken to identify other best practices of benchmarking. A further limitation of the study is that the survey items are based on the literature review.Practical implicationsA government body such as a benchmarking department (BPIS) can therefore focus on these factors for further development of benchmarking. BPIS Indonesia can organize more training and seminars for smaller manufacturing companies. From an organizational point of view, attention should be given to improving compatibility, employee innovativeness, and government intervention so that the best practices of benchmarking can be used proactively as a strategic tool.Originality/valueFrom the findings of this paper, in order for the benchmarking process to be successful, an organization needs these general requirements: top management commitment and support: a solid understanding of the manufacturing operations and requirements for improvement: willingness to share information with benchmarking partners; and dedication to ongoing benchmarking efforts.