Optimizing the Performance of Construction Companies using Goal Programming Model

Abstract

The construction industry is the driver to the social and economic development of a country. However, the construction industry is capital intensive and resource-reliance with high risk. These characteristics of the construction industry show high vulnerability to financial uncertainties. Therefore, this paper aims to examine the financial performance of the construction companies in Malaysia with goal programming (GP) model. This paper found that ECONBHD, GADANG, and MELATI have high liabilities while GADANG and MELATI have low profits. The powerful GP model has highlighted that the construction companies have high liquidity and solvency risks and could face problems to sustain their operations. This study could help the companies to determine the decremental and incremental values to reach the benchmark values for better financial performance.