The Value Position of the Role of Knowledge Management and Its Benefits for Benchmarking Application

The purpose of this research is to describe the value position and benefits of the role of knowledge management in benchmarking application. The paper also seeks to participate in the current debate on developing the theoretical basis for benchmarking concept and benchmarking cycle. Benchmarking is a valuable management tool, which provides an opportunity to learn from other enterprises. Knowing how the best enterprises conduct their business is a critical element of successful enterprise. In today's world, successful enterprises are those that are innovative, flexible and are able to handle rapid change. This can be achieved by continuously learning from others, doing benchmarking studies to create new knowledge, adapting new best practices, and innovations, establishing a knowledge management infrastructure to capitalize on and disseminating results gained from benchmarking studies widely throughout the organization. On the one hand managing knowledge and effective knowledge management play an important role in successful benchmarking studies, on the other hand benchmarking has the potential for development of knowledge management in the enterprise. The paper finds that it is important to understand the systematic relationship between knowledge management and benchmarking and be aware of the value that can be generated in creating sustainable competitive advantage.