Analysis of Companies Operating in the Construction Industry in the Czech Republic Based on Kohonen Networks – Identification of Leaders in the Field
Analysis of Companies Operating in the Construction Industry in the Czech Republic Based on Kohonen Networks – Identification of Leaders in the Field

Author(s): Jaromír Vrbka, Petr Šuleř, Jakub Horák
Subject(s): Social Sciences, Economy
Published by: Vysoká škola ekonomická v Praze
Keywords: Kohonen network; construction industry; cluster analysis; leaders in the field; national economy
Summary/Abstract: Purpose: Construction industry is a very important part of a national economy. Naturally, insuch a field a large number of business entities operate. Each of these entities has to measureits financial stability and to predict the future development. Design/methodology/approach: Within analysis, leaders in the field of construction industryare identified. For the purpose of the analysis, data entries of the financial statements obtainedfrom 12,584 companies operating in Czech construction industry in 2016. Using Kohonennetworks, cluster analysis is carried out. Findings: It can be stated that a relatively small group of companies strongly influences theconstruction industry development and thus the development of the entire national economy.The identified group of leaders of the construction industry consists of 59 companies out ofa total of 12,584. This represents 0.47% of all companies that were active in the sector duringthe 2016. Research/practical implications: A relatively small group of companies has a very highimpact on the development of the construction industry, we can say that this group has a majorimpact on the development of the entire national economy. Based on the result, we can deducethat the future development of the construction industry can be predicted based on the resultsof 59 enterprises. We should, for example, verify whether the representation of companies inindividual clusters will change over time. Originality/value: This contribution aims to analyse the entire construction industry in theCzech Republic using a modern innovative method, artificial intelligence – Kohonen networks.Leaders of the industry were identified. As a predictive tool, the analysis of 59 enterprises isvery positive. What is negative, however, is that the fluctuations in outputs (caused bywhichever reason) may result in a fluctuation in the entire branch of the national economy.

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