Radical changes, ideology, dwindling membership and financial distress: A macro longitudinal study

Zachary Sheaffer*, Benson Honig, Shaul Zionit, Orly Yeheskel

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

9 Scopus citations

Abstract

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.

Original languageEnglish
Pages (from-to)291-305
Number of pages15
JournalEuropean Management Journal
Volume29
Issue number4
DOIs
StatePublished - Aug 2011
Externally publishedYes

Keywords

  • Dwindling membership
  • Financial distress
  • Ideology
  • Kibbutzim
  • Radical change

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