A theory of benchmarking

Abstract

Benchmarking is a well established and respected mechanism that contributes to organisational improvement. Its epistemology demonstrates it to be theoretically underdetermined with literature focusing on pragmatism and praxis. Benchmarking's critics hold it to be a-theoretical; failing to provide its practitioners with a reliable basis for distinguishing between effective and ineffective efforts.

The purpose of this thesis is to review Benchmarking's epistemology and identify the necessary or sufficient methodological elements contributing to its effectiveness and to establish them within an acceptable theoretical framework.

A causal approach is applied to the objectives of organisational benchmarking's current definitions and implementation frameworks. The resulting theoretical framework is then validated against current exemplary benchmarking praxis to explain its effectiveness and satisfy historical criticisms. Central to the approach is the application of supervenience and entailment relationships between benchmarking parties within the umbrella of Peircean Causation to determine the feasibility of a benchmarking proposition.

Benchmarking's a priori effectiveness (sufficiency) can be established from an organisational axiom and five logical conditions. This research establishes a new encompassing definition of benchmarking reduces its typology to a single consistent form and establishes an Effective Benchmarking Process that explains current practices and addresses historical criticisms. These logical conditions also explain the effectiveness of empirical frameworks such as the Malcolm Baldrige National Quality Award and ISO 9000.

A theoretical foundation for benchmarking provides a platform for extending the theory of organisational improvement. It also has significant potential to enhance organisational sustainability by reducing wasted effort.

This research focuses on the causal linkages between benchmarking and organisational sustainability. The research establishes a new definition of benchmarking, specifies necessary and sufficient conditions for its application and frames practitioner efforts within an Effective Benchmarking Process (EBP).