Performance Evaluation of Construction Companies Using Integrated Entropy-Fuzzy VIKOR Model

Area of Science:

• Economic Development
• Financial Performance Analysis
• Construction Industry Dynamics

Background:

• The construction sector is vital for national economic development and infrastructure growth.
• Company financial performance reflects its health and status, crucial for economic indicators.
• The COVID-19 pandemic has significantly impacted construction sector operations and financial performance.

Purpose of the Study:

• To propose a novel multi-criteria decision-making (MCDM) model for evaluating construction company financial performance.
• To integrate the entropy and fuzzy VIKOR methods for a comprehensive financial assessment.
• To address the gap in existing literature regarding integrated entropy-fuzzy VIKOR models for construction financial evaluation.

Main Methods:

• Development of an integrated entropy-fuzzy VIKOR model for financial performance evaluation.
• Application of the proposed MCDM model to listed construction companies in Malaysia.
• Utilizing financial ratios as criteria for performance assessment within the model.

Main Results:

• The integrated entropy-fuzzy VIKOR model successfully evaluated and compared the financial performance of Malaysian construction companies.
• ECONBHD was identified as the company with the best financial performance during the study period.
• The study determined the priority of financial ratios and ranked construction companies based on their performance.

Conclusions:

• The proposed entropy-fuzzy VIKOR model provides a robust framework for assessing financial performance in the construction sector.
• The findings offer valuable insights for investors and stakeholders in evaluating construction companies.
• This research contributes a new methodological approach to financial performance analysis in uncertain environments.