System Engineering and Productivity

System Engineering and Productivity

Identification and Modeling of Key Factors Significant to the Financial Performance of Iranian Construction Companies

Document Type : Research Paper

Authors
Farhad Eghbal 1
Mohammad Ehsanifar 2
Mohammad Mirhosseini 3
Hossein Mazaheri 4
1 Ph.D. Student, Department of Civil Engineering, Arak Branch, Islamic Azad University, Arak, Iran
2 Corresponding author: Associate Professor, Department of Industrial Engineering, Arak Branch, Islamic Azad University, Arak, Iran
3 Associate Professor, Department of Civil Engineering, Arak Branch, Islamic Azad University, Arak, Iran
4 Assistant Professor, Department of Chemical Engineering, Arak Branch, Islamic Azad University, Arak, Iran
10.22034/msb.2024.2034092.1218
Abstract
The aim of this study is to identify significant key factors on financial performance and ultimately confirmatory factor analysis, the model of key criteria affecting the financial performance of Iranian construction companies. The present study was mixed (qualitative-quantitative) in terms of methodology. In the first stage, a comprehensive model of key criteria affecting the financial performance of construction companies was obtained by using a meta-synthesis qualitative method with a review of previous literature in the field of financial performance, surveying, collecting data and integrating them. For its validation, the opinions of experts were used in the Delphi method and the model was designed in 5 dimensions and 12 indicators. In the quantitative stage, the survey research method and the data collection tool in this section were a researcher-made questionnaire. To measure the validity of the questionnaire, the face-content validity method was reviewed by the professors of the construction management department. The reliability of the questionnaire was confirmed using Cronbach's alpha. The questionnaire was distributed among construction companies active in the field of buildings and construction in Tehran, which were recognized as the first-ranked qualified companies by the Management and Planning Organization. Next, using a researcher-made questionnaire, the external and internal validation of the key criteria model affecting the financial performance of Iranian construction companies was examined with the help of Smart-PLS software. The external validation of the model was confirmed by convergent validity and composite reliability, and the model was presented. The present research model has been able to provide important relevant information about the financial performance of construction companies and help the company and its stakeholders in better planning its strategies and policies by focusing on several important areas for the overall improvement of the company.

Highlights

  • Investigating key factors that are significant in the financial performance of construction companies in Iran
  • Developing a model to identify key factors that are significant in the financial performance of construction companies in Iran
  • Evaluating and validating the proposed research model by examining the quality of the research model (internal model fit), the overall strength criterion of the research model, and the goodness-of-fit criterion

Keywords
Financial Performance
Iranian Construction Companies
Confirmatory Factor Analysis
Identification
Modeling
Subjects

Copyright ©, Farhad Eghbal, Mohammad Ehsanifar, Mohammad Mirhosseini, Hossein Mazaheri

 

License

This article is released under the Creative Commons Attribution (CC BY 4.0) license. Anyone is free to copy, share, translate, and adapt this article for any purpose, whether commercial or non-commercial, as long as proper citation is given to the authors and original publication.

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System Engineering and Productivity
Volume 4, Issue 4 - Serial Number 13
Serial No. 13, Winter Quarterly
Winter 2025
Pages 77-94

  • Receive Date 30 September 2024
  • Revise Date 22 October 2024
  • Accept Date 09 November 2024
  • First Publish Date 09 November 2024
  • Publish Date 19 February 2025