THE IMPACT OF BENCHMARKING, STANDARDIZATION AND PURCHASING ON BUSINESS PERFORMANCE IN THE FOOD & BEVERAGE INDUSTRY IN THAILAND

Abstract

The researcher examines benchmarking, standardization, and purchasing characteristics to identify their relationship with purchasing performance and business performance.  Hypotheses, derived from the key features as presented by previous authors, are tested using Structural Equation Modeling through field research on a sample of manufacturing companies in Thailand.

Findings from this study indicate that there is significant evidence to support the hypothesized model in which benchmarking, standardization, purchasing characteristics have a direct impact on purchasing and business performance, as well as an indirect impact on business performance mediated through purchasing performance.  Firms can thus improve their purchasing and business performance through an increased emphasis in benchmarking, standardization, and purchasing characteristics.