Performance Ranking of Construction Companies using Data Envelopment Analysis Model

Abstract

Construction sector is an important industry in contribution economy growth of Malaysia. At this presence time, inflation cost is the critical issue that facing by construction sector companies which impacting the financial performance. The purpose of this study is to investigate the performance of 42 construction companies listed in main market of Bursa Malaysia by Data Envelopment Analysis (DEA) model and super-efficiency DEA with duration from year 2013 until 2022. The analysis measurement uses an output-oriented approach which contains the six key financial ratios to identify the most efficient companies. The data that obtained from financial reports through Bursa Malaysia are utilized. The finding of this paper reveals various in efficiency score among the construction sector companies which underscoring the notability of employing the operational efficiency, enhancing construction sector performance for sustainability as well as the ability of competitiveness significantly. This research delivers the valuable findings to the literature on evaluation of efficiency performance within the construction sector, which hold the significant implications for various stakeholders and improvement on their strategic decision making. The future research of this study can be extended to further examine other sector companies such as agricultural product sector, food and beverage sector, and etc. through examining efficiency.