Abstract:

The purpose of this research is to explore systematic relationship between knowledge management and benchmarking, and describe the value in creation competitive advantage for enterprises. In today’s competitive word enterprises must re-establish themselves to be innovative, customer oriented, faster, flexible, and be able to handle rapid change. This can be achieved by continuously learning from others, doing benchmarking studies, establishing a knowledge management infrastructure to capitalize on and transfer results gained from benchmarking studies, adapting new best practices, and innovations. The paper describes benefits of benchmarking and knowledge management co-operation. Benchmarking has the potential for development of knowledge management in the enterprise. On the other side, managing knowledge and effective knowledge management is very important for doing benchmarking studies. This article also seeks to participate in the current debate on developing the theoretical basis for the benchmarking concept and benchmarking cycle.