Benchmarking Practices by Business Incubation Centres in Kenya

Abstract

Benchmarking, a management approach for implementing best practices at best cost, is not a recent concept in the business industry and businesses at large. The practice has never been an easy process tool and it can be difficult for many organizations. The process tool needs to be tackled with preciness. This is due to the difficulties in comparing data as well as the tool being too general. The process of identifying and implementing better practice has become an important concept with focus on understanding and evaluating the current position of the organizations as compared to best practice. This has then led to many organisations introducing bechnmarking. The purpose of the study therefore was to find out the various benchmarking practices adapted by business incubation centres. The study adopted a case study research design and data was collected by use of questionnaires. The study targeted 7 facilitators as the population of study and used a census sampling method. Only 6 questionnaires were returned giving an 85% response rate. Content analysis was employed to analyze the data. The study found that most facilitators adopted the ‘new economy’ business incubators. Most of these business incubators are usually private-owned with a firm drive to make profits and the returns normally stem from investment in companies as opposed to income from rental amenities. They are tech-based incubators unlike the old incubators which were theory based. In comparison with the theories, the study agreed with the theoretical framework as the findings were technology oriented. In comparison with the scholars, the findings were in disagreement as these scholars focused on the old model of incubators. The study was limited to facilitators in Nairobi. The study was also limited to time and resources of the researcher. Respondents in the study may not have given accurate information and thus the findings may be biased. The study recommends that Business incubators should charge customers for the support services they render to them but the level at which costs are pitched ought to be intended to limit the danger of 'swarming out' private area suppliers. The exploration proposes that moderately couple of incubation centres (around 4%) give business bolster benefits on an altogether free premise to customers. In any case, estimating levels have a tendency to mirror a component of endowment (35%) of the business incubators expressed that valuing was beneath advertise levels). Further research should be done on the consistency among the practices of benchmarking, the processes of benchmarking, challenges and other relevant aspects of benchmarking.