INSIGHTS INTO THE SPECIFICS OF BENCHMARKING TOOLS APPLICATION BY SMALL AND MEDIUM-SIZED BUSINESSES

Abstract

This article seeks to explore the specifics of benchmarking tools application to enhance the performance of small and medium-sized enterprises. The study offers insights into the nature of benchmarking in the context of its application specifics for small and medium businesses. Based on consolidation of theoretical approaches and specific application patterns, an author’s original interpretation of benchmarking for small and medium-sized enterprises has been suggested. The key barriers to effective implementation of benchmarking in the SME sector have been identified. The findings have revealed that the major barrier for small and medium-sized companies within the benchmarking process is limited resources and a threat of information hiding. It is argued that the use of benchmarking methodology contributes to boosting competitiveness and economic efficiency of business entities as well as becomes a powerful driver of cross-sectoral cooperation and partnership and promotes further advanced business interaction practices. It is concluded that the current dynamism in the marketplace and the external environment challenges businesses, especially SMEs, to continuous monitoring and prompt adaptation to changes in the business settings. Implementation of best practices in the area of business processes and their key performance indicators will significantly reduce the adaptation period as well as enables small and medium businesses be on a par with large enterprises that have extensive financial resources to develop, test and implement new technologies of doing business.