Top Management’s Role in Benchmarking Implementation in the Palm Oil Processing Industry

Top Management’s Role in Benchmarking Implementation in the Palm Oil Processing Industry

Fatimah Mahmud, Baba Md Deros, Dzuraidah Abdul Wahab and Mohd Nizam Ab Rahman

Abstract: To remain competitive, cost effective and sustainable market share in the world market place for edible oil, millers in the palm oil processing industry needs to focus on the process for extracting high quality and high palm oil yield from fresh fruit bunch economically. Benchmarking technique can be used to identify and investigate palm oil processing industry best practices adopted by palm oil millers. Past studies showed that the success of benchmarking initiative is very much dependent on top management’s commitment and leadership. The main objective of this paper is to discuss managers’ perception on the importance and actual practice in palm oil processing industry with respect to eight attributes of top management’s commitment and leadership. In this study, survey questionnaire was developed and employed to collect the data. The survey questionnaire was sent by postal mail to 350 palm oil mill managers in Malaysia. The survey response rate was 51.1%. Analysis of the survey results shows significant differences between respondents’ perception on the importance and actual practice of the eight attributes of top management’s commitment and leadership. In other words, they have high perception of importance for the eight attributes; however, in reality the attributes are not really put into practice. In conclusion, to ensure benchmarking implementation success, top management need to practice these attributes systematically.

Keywords: Top management, perception, practice, palm oil processing industry, benchmarking.

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