International Journal for Quality Research 7(3) 3–14 ISSN 1800-6450 373 Aleksandar Vujovic 1 Zdravko Krivokapic Je le na Jovanovic Sanja Pekovic Radivoje Micunovic Article info: Received 26 February 2013 Accepted 2 July 2013 UDC – 65.018 BUSINESS PROCESS IMPROVEMENT BY APPLYING BENCHMARKING BASED MODEL Abstract: The choice of theme is identified by the need to improve business processes in organizations, as well as the continuous improvement of overall quality, which is under- represented in the Montenegrin organizations. The state of Montenegro has recognized the growing importance of small and medium-sized organizations in the development of the national economy.Small and medium-sized organizations are the drivers of future economic growth and development of every country whose competitiveness has to pay special attention. One of the main sources of the competitiveness of small and medium-sized organizations is their pursuit to the business excellence, because it has become the most powerful means of achieving competitive advantage of organizations. The paper investigates certified organizations in Montenegro and their contemporary business and commitment towards business excellence.These organizations in Montenegro adapt its business to international standards and procedures that represent the future of economic growth and development of modern business. Research results of Montenegrin organizations were compared with small and medium-sized organizations from Serbia, which won the awards for business excellence "Quality Oscar" in the category of small and medium-sized organizations, for the last three years (2009, 2010, and 2011). The idea comes from the neccessity of Montenegrin economy to give small contribution in order that small and medium organizations ajust their businesses to the new business. Keywords: benchmarking, business process 1. Introduction 1 In the new conditions the changes rapidly taking place, the success of any organization depends on its ability to quickly change and adapt to the real conditions in order to 1 Corresponding author: Aleksandar Vujovic email: aleksv@ac.me survive in the market. One such approach is also a commitment to the improvement and advancement of business processes, which is the basis of the modern business world. The economy of Montenegro is striving to get closer to the Western European countries joining the EU, there will be a much stronger participation from leading manufacturers what induces that the organization in the domestic market must make considerable