Evaluation of the Performance of Technology Companies using VIKOR Algorithm

Abstract

Technology sector plays a central role in a country nowadays. The development of the current era where the contribution of technology cannot be denied and should be greatly concerned by the government indeed. The financial structure of the technology companies is needed to be improved so that they are more resistant to economic fluctuations. Moreover, the technology sector constitutes an essential part of global employment, and it can also contribute to world economic growth in an effective way. For nowadays’ trends, the competitive environment forced companies to utilize their financial resources effectively. As a result, the financial performance (FP) of the technology companies is investigated in this study. The FP is assessed by the important financial factors, which are current assets, total assets, current liabilities, total liabilities, revenue and net income. The purpose of this research is to propose a research framework to determine the FP and ranking of Malaysia’s technology companies using VIKOR algorithm. According to the results of this research, the five top-performing companies in terms of FP are MYEG, INARI, VSTECS, VITROX and PENTA. Based on the optimal solution of VIKOR algorithm, OMESTI is not able to show good financial performance as compared to other technology companies. This paper is also capable to provide insight into the technology companies for benchmarking in the future based on the ranking and current financial status of the companies. This study is significant to investigate the FP and ranking of technology companies with the proposed VIKOR algorithm.