Unfamiliar relatives in the service sector

Abstract

Purpose This paper presents an approach by which potential benchmarking partners in the service sector can be matched together more efficiently. The purpose of this paper is to decide which organisations are appropriate partners based on their distinctive characteristics and problems with service management. Design/methodology/approach In the research presented in this paper, cluster analysis and other statistical analyses were applied to data from a survey of managers in service organisations with the aim of identifying groups of services related to each other in their distinctive characteristics and the problems they face. Findings The research found that it is possible to identify hidden “relationships” that allow superficially different services to be grouped together. The identified relationships are based on similarities in the problems which the companies face and their distinctive characteristics. Operating in a different area of activity increases the chance that a service provider will be willing to enter into a partnership and greater potential innovation value from best practice. Cluster analysis was used to identify three groups of services in the research sample which could be benchmarking partners for each other. Research limitations/implications The research studied only a selective group of nine services in different areas of activity. A statistical survey of 388 organisations in one country verified the methodology in terms of statistical significance and the potential for successful identification and adoption of best practice within a group of related services created using the proposed procedure has also been confirmed. The real value of the approach can only be determined by its repeated use to establish benchmarking partnerships and the success of such partnerships, which can be defined as the adoption of innovative best practice. Practical implications The approach described in this paper could make it easier to develop non-competitive benchmarking in the service sector and increase the probability of success in identifying and transferring best practices between organisations in benchmarking partnerships established using it. Originality/value One of the first steps in collaborative benchmarking is to establish a partnership with a similar non-competing organisation. The procedure for this step is still not adequately defined. This paper contributes to the theoretical foundations and practical applications of research by setting out an original method for identifying suitable partners in non-competing sectors of the service industries. This will improve the prospects for successful partnership and greater innovativeness in best practice.