Framework and determinants of benchmarking: a theoretical analysis and case study in Vietnam
International Journal of Emerging Markets
ISSN: 1746-8809
Article publication date: 26 January 2022
Issue publication date: 21 November 2023
Abstract
Purpose
This study aims to develop a benchmarking model with productivity, management, and sustainability indicators (PMS), measure the performance of furniture firms in Vietnam, explore the causes of performance gaps, and identify the barriers and factors of benchmarking practice.
Design/methodology/approach
The article uses both qualitative and quantitative methods. Literature review, exploratory interviews and a grounded-theory process are employed to develop a benchmarking framework and identify performance gaps, barriers and factors of benchmarking practice. The PMS benchmarking model and quantitative analysis are utilized to assess performance indicators.
Findings
The study proposes the PMS benchmarking model and measures performance indicators of furniture firms. The sources of performance gaps are explored as design, material supply, the economy of scale, market, management systems and openness. Benchmarking practice encounters barriers of difficult indicators, unsuitable firms, insufficient benchmarking knowledge, reluctance to share data, unavailable and unreliable data, and weak engagement. Benchmarking practice is determined by core factors: leader; internal factors: systems, engagement, strategy, scope, culture; external factors: customers, suppliers, associations, support, competition.
Practical implications
Firms could learn benchmarking indicators and the causes of these gaps to improve their performance. When implementing a benchmarking study, scholars and practitioners need to pay attention to barriers and factors of the benchmarking practice to ensure effective results.
Originality/value
This study develops the PMS benchmarking model and estimates performance indicators in an emerging country with the performance gap justification. It provides readers with benchmarking barriers with solutions and success factors of benchmarking practice.
Keywords
Acknowledgements
This research is funded by the University of Economics Ho Chi Minh City. The authors thank the ILO officers, HAWA, BIFA, VCCI and enterprises for their generous support and data to complete this research. The authors would like to express their deep gratitude to the Editors and Reviewers for their kind comments to improve the article.
Citation
Hoang, V., Nguyen, K.-D. and Nguyen, H.-L. (2023), "Framework and determinants of benchmarking: a theoretical analysis and case study in Vietnam", International Journal of Emerging Markets, Vol. 18 No. 10, pp. 4651-4668. https://doi.org/10.1108/IJOEM-04-2021-0553
Publisher
:Emerald Publishing Limited
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