Mechanism of Benchmarking and Its Impact on Organizational Performance

Abstract

This paper investigates the importance of benchmarking as a tool that can enhance organizational performance. The purpose of this study is to discuss the most important studies of benchmarking and its effect on organizational performance. Benchmarking has spread fast and become one of most used competitive technique that improve the performance of an organization by identifying, understanding, and adapting good practices from other organizations. The main use of benchmarking is to find best practices and then trying to apply them for the sake of achieving the organization’s goals. Many researchers examined the relationship between benchmarking and organizational performance. Therefore, this article is an attempt to review published studies in the literature and to pave the road for future empirical studies in different contexts.