The organizational performance of housing developers in Peninsular Malaysia

Purpose – In Malaysia, the rapid urbanization that has been taking place since 1970s has made the housing development sector a key factor in the growth of Malaysia's economic prosperity. This paper aims to shed light on the performance of housing developers in Peninsular Malaysia by looking into the financial and non‐financial measures. Design/methodology/approach – The organizational performance of 57 housing developers was studied by measuring their financial and non‐financial performance in the period 2006‐2008 using the Business Performance Composite Index. Findings – The results of the study revealed that the performance of housing developers in the period 2006‐2008 has been growing in terms of profit margin, financial growth, and number of employees. Small and big housing developers were better than medium‐sized housing developers in terms of profitability. Originality/value – This paper is unique because it looks into the financial ratios of return on investment, return on assets, and return on sales, which will clearly show how those housing developers have been performing financially in the period 2006‐2008.