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ABSTRACT: Benchmarking is an important technique that organisations seek to implement to obtain superior performance. This study focuses on understanding and explaining the problems that confront organisations that implement benchmarking practices. Attention is focused on two aspects of the process that lead to these problems. Benchmarking is an exogenous process for an organisation as well as a multivariate one. Further, discussion is devoted to culture and organisational issues relevant to benchmarking. This paper argues that the sensitivity and behaviour of managers are more influenced by 'vivid' than by statistical information when benchmarking is implemented. It also describes the availability heuristic that influences the benchmarking decisions of managers. A central focus of the paper is a concern with benchmarking processes in the context of a developing country.
International Journal of Accounting Auditing and Performance Evaluation 02/2008; 5(2):203-227.
