Structural Equation Modeling to Explore the Critical Success Factors of Benchmarking Implementation within Industrial Clusters

Due to the unique features, small and medium-sized enterprises (smes) located in industrial clusters can implement benchmarking more easily and effectively than individual companies. nevertheless, there is not a benchmarking model that has been specially developed to consider the clustered smes characteristics. this research aims to identify and model the critical success factors (csfs) affecting the implementation of benchmarking in the clusters of smes. through literature review and interviews with industry experts and companies’ owners, the needs of industrial clusters for benchmarking implementation were identified, and the initial success factors were recognized. the research framework was developed, and a questionnaire was designed and validated. after a pilot study, 412 questionnaires were distributed among smes in four well-developed industrial clusters involved in the metal sectors. by receiving 151 filled questionnaires from companies, a one-way independent analysis of variance (anova) was performed to ensure that smes located in different clusters could be considered a single sample. exploratory factor analysis (efa), confirmatory factor analysis (cfa) followed by structural equation modelling (sem) resulted in the construction of the csfs model. the standardized path coefficients of the model were calculated, which were positively associated with benchmarking. this study is a pioneering attempt to investigate the csfs of benchmarking implementation regarding the particular characteristics of clustered smes. it does not apply to individual organizations unless they act in a network with similar infrastructure such as benchmarking clubs or create an extended network enterprise. it is conducted from the perspective of smes; thus, some of the identified factors might not be relevant to large organizations. the detailed csfs model provides ideas on what needs to be focused on to achieve continuous improvement. it could be applied in sme clusters in similar developing and newly industrialized countries with minor modifications.