Discuss whether benchmarking to achieve greater efficiency should lead to greater profitability
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Assignment question:
Kerimodou et al. (2013:655) report the results of their research as follows:
This study was designed to identify the relationship between
technical efficiency and profitability in the Greek meat processing
industry for the period 1994-2007 by using the new performance
decomposition model proposed of Chen et al. (2009). Results showed
the firms with a higher technical efficiency were not usually the best
performers in profitability.
Discuss whether benchmarking to achieve greater efficiency should lead to
greater profitability.
You should start by looking at the original article.
Article: Ioanna Keramidou, Angelos Mimis, Aikaterini Fotinopoulou, Chrisanthos D. Tassis (2013) “Exploring the relationship between efficiency and profitability”. Benchmarking: An International Journal, 20(5): 647-660.
Do not be too concerned if you cannot follow the methodology and data analysis but consider the sample and results. What kind of efficiency are the authors talking about – and does it relate to efficiencies sought through benchmarking?
This question is asking you to consider the relationship between
benchmarking and profitability. How is it described in the literature, and
what evidence can be gathered for that relationship? Is efficiency central to
both benchmarking and profitability?
