Locay, A (2012) An examination of collective behavior, optimism, uncertainty and their effects on corporate strategies in the home building industry. PhD thesis, Nova Southeastern University, USA.
Abstract
Research was conducted to determine whether there is a relationship between the theory of collective behavior and the selection of a corporate strategy. To conduct the first portion of the study, existing survey information was obtained from the National Association of Home Builders to investigate the existence of a heightened shared feeling of optimism within the home building industry. A test of the variance (ANOVA) suggests that during the housing boom the industry experienced peak levels of optimism consistent with the theory of collective behavior. Using secondary financial data, the research then investigated the possibility that builders moved to a growth strategy as a response to that heightened sense of optimism. A test of the variance (ANOVA) suggests that builders moved to a growth strategy as a response to the heightened optimism by substantially increasing their assets, debt and shares outstanding, as compared to previous years. Using the results of 150 surveys, the study investigated the theory that optimism lowers the effects of uncertainty. Hence, the research hypothesized that as optimism increases, uncertainty decreases, and as a result, strategic growth decisions become more likely. The research found strong correlations between respondents who were optimistic and those willing to make decisions that are consistent with growth strategies. The analysis found negative correlations with optimism and uncertainty. More specifically, the research concluded that as optimism increases, uncertainty decreases, and thus, home building managers are more likely to move to a growth strategy. In general, the research supports the hypothesis that collective behavior can have a significant impact on strategic decisions among managers. While previous research suggests that information is the variable that lowers levels of uncertainty, this research supports the possibility of an additional variable: optimism.
| Item Type: | Thesis (Doctoral) |
|---|---|
| Thesis advisor: | Mujtaba, B G |
| Uncontrolled Keywords: | uncertainty; building industry; corporate strategy; builder |
| Index terms: | housing, survey, builder, strategy, manager, home building, building industry, corporate strategy, variance |
| Subjects: | practitioner, construction type, management, industry analysis, measurement and scaling, data collection methods, business |
| Topics: | Governance, Construction Technology, Roles and Professions, Research Practice, Business Strategy |
| Descriptive scope: | 4 PCEA |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here