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Investigates the link between benchmarking and operational performance using a sample of over 600 European manufacturing sites. Benchmarking is linked to the identification and adoption of improved operational practices, an increased understanding of competitive positioning, and the larger context of the “learning organization”. Shows that benchmarking may indeed contribute to improved operational performance, first through improving the firm’s understanding of its competitive position and its strengths and weaknesses, and second through providing a systematic process for effecting change. Learning organizations were more likely to benchmark than other firms.

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