The Impact of Change in the Kibbutz on Risk- Taking of Entrepreneurs

Liema Davidovich, Sibylle Heilbrunn and Avraham Polovin

Journal of Rural Cooperation, 2009, vol. 37, issue 2, 19

Abstract: In the last decade the Israeli Kibbutz movement underwent crucial changes as to its level of cooperation. More than half of the Kibbutzim have changed towards a less cooperative system now characterized by increasing individualism. Since the process of organizational change occurred during a defined period of time, Kibbutzim can be considered a laboratory for investigating the changes in risk-taking. Thus, it is the aim of our paper to investigate the relation between the levels of inequality in Kibbutz organizations and its impact on their risk-taking propensity regarding new venture creation. We investigated 58 Kibbutzim; 36 underwent organizational change processes towards increasing individualism between the years 1997 to 2004, whereas the remaining 22 continued the traditional collective-oriented style. The comparison of differential-oriented Kibbutzim and collective-oriented ones in 2004 shows a difference of distribution of operational risk level between the two organizational cultures. We found higher degree of risk-taking in more collective-oriented organizational cultures.

Keywords: Community/Rural/Urban Development; International Development; Risk and Uncertainty (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:jlorco:163782

DOI: 10.22004/ag.econ.163782

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