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Radical changes, ideology, dwindling membership and financial distress: A macro longitudinal study
Dept. of Economics and Management, Ariel University Centre, Ariel, Israel.
Teresa Cascioli Chair in Entrepreneurial Leadership, DeGroote School of Business, McMaster University, Hamilton, ON, Canada.ORCID iD: 0000-0003-0563-0899
Dept. of Management and Economics, The Open University of Israel, Israel.
School of Management and Economics, The Academic College of Tel-Aviv Jaffa, Tel Aviv, Israel.
2011 (English)In: European Management Journal, ISSN 0263-2373, E-ISSN 1873-5681, Vol. 29, no 4, p. 291-305Article in journal (Refereed) Published
Abstract [en]

In this longitudinal study we examine how core changes, dwindling membership and ideological embeddedness, lead to financial distress in a unique organizational setting: declining Israeli kibbutzim. We analyze six years of core changes and their effects on financial distress for 102 Israeli kibbutzim. The research is based on an organizational macro-temporal dataset where the same 40 changes were measured concurrently and consecutively in 270 kibbutzim. These changes range from incremental or tectonic, to radical, and cover a range of organizational facets. Results indicate that turnaround measures, including radical transformation of governance and remuneration policies, serve only to exacerbate rather than alleviate financial distress. Stronger ideological embeddedness was also found to aggravate financial distress.

Place, publisher, year, edition, pages
Elsevier, 2011. Vol. 29, no 4, p. 291-305
Keywords [en]
Dwindling membership, Financial distress, Ideology, Kibbutzim, Radical change
National Category
Business Administration
Identifiers
URN: urn:nbn:se:hj:diva-34391DOI: 10.1016/j.emj.2010.11.001ISI: 000294106400005Scopus ID: 2-s2.0-79960220057OAI: oai:DiVA.org:hj-34391DiVA, id: diva2:1246320
Available from: 2018-09-07 Created: 2018-09-07 Last updated: 2018-09-07Bibliographically approved

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