Applicability of the high-performance organization framework in the diamond industry value chain

Purpose – The diamond industry used to be a stable sector. However, the market for diamonds is changing rapidly due various developments, putting margins in the entire diamond industry under severe pressure. Consequently diamond retailers have begun to search for new methods that could help them improve their performance. This paper aims to evaluate whether the high-performance organization (HPO) framework can be used to help diamond retailers achieve better results. Design/methodology/approach – The HPO framework was applied at two actors in the diamond industry value chain, a dealer and an intermediate, in order to identify the HPO factors that most influence the results of these companies. Special attention was paid to the matching of the characteristics of the HPO framework and the characteristics influencing the success of partnerships. Findings – The research results show that the HPO framework can be used to identify the improvements needed to increase the level of performance of all players in the diamond industry value chain. Originality/value – The results of this study fill a gap in current academic and management literature on the diamond industry as little research has been done into the factors that cause sustainable high performance in this sector. The results can also be used by managers of diamond retailers to increase company results and to cooperate more closely in the diamond industry value chain.