A Review of Benchmarking Implementation Problems: The Case of UAE Industrial Companies

Benchmarking is the continuous process of measuring products, services and practices against competitors recognised as industry leaders. This study focuses on understanding and explaining the problems that confront companies which implement benchmarking practices. Attention is centralized on two aspects of the process that lead to these problems. Benchmarking is an exogenous process for the company as well as a multivariate one. Further discussion is devoted to culture and the company’s issues relevant to benchmarking. This paper argues that when benchmarking is implemented, the sensitivity and behaviour of managers are more influenced by’ vivid’ than by statistical information. The availability heuristic that influences the benchmarking decisions of managers is also described. The main concentration of the paper is a concern with benchmarking processes in the context of a developing country.