Collaborative benchmarking in the Danish district-heating sector

Abstract

Purpose

The purpose of this paper is threefold: to investigate why and how companies in voluntary networks engage in performance benchmarking; how requirements for a standardised chart of accounts are handled; and what the role of regulatory pressure is.

Design/methodology/approach

The paper is based on a longitudinal case study of an established group of six district-heating companies. The data sources are semi-structured interviews, observations and documents.

Findings

Both the forthcoming re-regulation of the district-heating sector and aims to improve efficiency were motivating the collaboration among the firms. An interpretation of common accounting rules can be negotiated in a collaborative network. The benchmarking model was embedded in routines internally in firms to facilitate learning and knowledge exchange, but it was also used to legitimise current operations.

Research limitations/implications

As the paper is based on a case study of a specific project, the issues discussed in the paper should be further investigated in similar firms being exposed to regulation.

Practical implications

Harmonisation of accounting data are of immense importance when benchmarking performance, but discretion in interpretations of data and results must be handled. Co-existence with existing rules and procedures should be allowed.

Originality/value

The paper contributes to research understanding the role of collaboration in voluntary networks when benchmarking is implemented.

Citation

Bukh, P.N. and Dietrichson, L.G. (2016), "Collaborative benchmarking in the Danish district-heating sector", International Journal of Public Sector Management, Vol. 29 No. 5, pp. 502-519. https://doi.org/10.1108/IJPSM-03-2016-0049