IDEAS home Printed from https://ideas.repec.org/a/ags/jlorco/163782.html
   My bibliography  Save this article

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

Author

Listed:
  • Davidovich, Liema
  • Heilbrunn, Sibylle
  • Polovin, Avraham

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.

Suggested Citation

  • Davidovich, Liema & Heilbrunn, Sibylle & Polovin, Avraham, 2009. "The Impact of Change in the Kibbutz on Risk- Taking of Entrepreneurs," Journal of Rural Cooperation, Hebrew University, Center for Agricultural Economic Research, vol. 37(2), pages 1-19.
    • Handle: RePEc:ags:jlorco:163782
    DOI: 10.22004/ag.econ.163782
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/163782/files/Davidovich%20jrc37-2_2009_.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.163782?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Shaker A. Zahra, 1993. "A Conceptual Model of Entrepreneurship as Firm Behavior: A Critique and Extension," Entrepreneurship Theory and Practice, , vol. 17(4), pages 5-21, July.
    2. Diamond, Peter & Rothschild, Michael (ed.), 1978. "Uncertainty in Economics," Elsevier Monographs, Elsevier, edition 1, number 9780122148507.
    3. Berger, Philip G & Ofek, Eli & Yermack, David L, 1997. "Managerial Entrenchment and Capital Structure Decisions," Journal of Finance, American Finance Association, vol. 52(4), pages 1411-1438, September.
    4. Frank A. Cowell, 1985. "Measures of Distributional Change: An Axiomatic Approach," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 52(1), pages 135-151.
    5. Amiel, Yoram & Cowell, Frank A., 1992. "Measurement of income inequality : Experimental test by questionnaire," Journal of Public Economics, Elsevier, vol. 47(1), pages 3-26, February.
    6. Gregory G. Dess & G. T. Lumpkin & J. G. Covin, 1997. "Entrepreneurial strategy making and firm performance: tests of contingency and configurational models," Strategic Management Journal, Wiley Blackwell, vol. 18(9), pages 677-695, October.
    7. Samuel, Yitzhak & Heilbrunn, Sibylle, 2001. "Entrepreneurship in the Kibbutz Setting: Towards a Classification of New Business Ventures," Journal of Rural Cooperation, Hebrew University, Center for Agricultural Economic Research, vol. 29(1), pages 1-18.
    8. Wiklund, Johan & Shepherd, Dean, 2005. "Entrepreneurial orientation and small business performance: a configurational approach," Journal of Business Venturing, Elsevier, vol. 20(1), pages 71-91, January.
    9. Yoram Kroll & Liema Davidovitz, 2003. "Inequality Aversion versus Risk Aversion," Economica, London School of Economics and Political Science, vol. 70(277), pages 19-29, February.
    10. Atkinson, Anthony B., 1970. "On the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 2(3), pages 244-263, September.
    11. Palich, Leslie E. & Ray Bagby, D., 1995. "Using cognitive theory to explain entrepreneurial risk-taking: Challenging conventional wisdom," Journal of Business Venturing, Elsevier, vol. 10(6), pages 425-438, November.
    12. Gevers, Louis & Glejser, Herbert & Rouyer, Jean, 1979. " Professed Inequality Aversion and Its Error Component," Scandinavian Journal of Economics, Wiley Blackwell, vol. 81(2), pages 238-243.
    13. Sibylle Heilbrunn, 2008. "Factors influencing entrepreneurial intensity in communities," Journal of Enterprising Communities: People and Places in the Global Economy, Emerald Group Publishing Limited, vol. 2(1), pages 37-51, March.
    14. John C. Harsanyi, 1955. "Cardinal Welfare, Individualistic Ethics, and Interpersonal Comparisons of Utility," Journal of Political Economy, University of Chicago Press, vol. 63(4), pages 309-309.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Eleonora Perversi & Eugenio Regazzini, 2015. "Inequality and risk aversion in economies open to altruistic attitudes," Papers 1507.00894, arXiv.org, revised May 2016.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Marcelo Bérgolo & Gabriel Burdín & Santiago Burone & Mauricio de Rosa & Matías Giaccobasso & Martín Leites, 2020. "Dissecting Inequality-Averse Preferences," Documentos de Trabajo (working papers) 20-19, Instituto de Economía - IECON.
    2. Traub, Stefan & Seidl, Christian & Schmidt, Ulrich, 2009. "An experimental study on individual choice, social welfare, and social preferences," European Economic Review, Elsevier, vol. 53(4), pages 385-400, May.
    3. Clark, Andrew E. & D'Ambrosio, Conchita, 2014. "Attitudes to Income Inequality: Experimental and Survey Evidence," IZA Discussion Papers 8136, Institute of Labor Economics (IZA).
    4. Traub, Stefan & Seidl, Christian & Schmidt, Ulrich, 2003. "Lorenz, Pareto, Pigou: Who Scores Best? Experimental Evidence on Dominance Relations of Income Distributions," Economics Working Papers 2003-04, Christian-Albrechts-University of Kiel, Department of Economics.
    5. Knight, Gary & Moen, Øystein & Madsen, Tage Koed, 2020. "Antecedents to differentiation strategy in the exporting SME," International Business Review, Elsevier, vol. 29(6).
    6. Yoram Amiel & Michele Bernasconi & Frank Cowell & Valentino Dardanoni, 2015. "Do we value mobility?," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 44(2), pages 231-255, February.
    7. Rakesh Gupta & Sriparna Basu, 2014. "Influence of Dimensions of Strategic Orientation on the Growth of Small Firms and Resources as Moderating Variables," Management and Labour Studies, XLRI Jamshedpur, School of Business Management & Human Resources, vol. 39(4), pages 461-476, November.
    8. Schlör, Holger & Fischer, Wolfgang & Hake, Jürgen-Friedrich, 2012. "Measuring social welfare, energy and inequality in Germany," Applied Energy, Elsevier, vol. 97(C), pages 135-142.
    9. Takashi Oshio & Miki Kobayashi, 2011. "Area-Level Income Inequality and Individual Happiness: Evidence from Japan," Journal of Happiness Studies, Springer, vol. 12(4), pages 633-649, August.
    10. Lulu Zhou & Haiyan Huang & Xiaolin Chen & Feng Tian, 2023. "Functional diversity of top management teams and firm performance in SMEs: a social network perspective," Review of Managerial Science, Springer, vol. 17(1), pages 259-286, January.
    11. Schweiger, & Baldauf,, 2016. "„Entrepreneurial Orientation“: Eine Bestandsaufnahme der Konstruktschärfe," Die Unternehmung - Swiss Journal of Business Research and Practice, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 70(4), pages 423-447.
    12. Thomas Keil & Markku Maula & Evangelos Syrigos, 2017. "CEO Entrepreneurial Orientation, Entrenchment, and Firm Value Creation," Entrepreneurship Theory and Practice, , vol. 41(4), pages 475-504, July.
    13. Seidl, Christian & Camacho Cuena, Eva & Morone, Andrea, 2003. "Income Distributions versus Lotteries Happiness, Response-Mode Effects, and Preference," Economics Working Papers 2003-01, Christian-Albrechts-University of Kiel, Department of Economics.
    14. Amiel, Yoram, 1998. "The subjective approach to the measurement of income inequality," LSE Research Online Documents on Economics 6595, London School of Economics and Political Science, LSE Library.
    15. Alain Chateauneuf & Patrick Moyes, 2005. "Lorenz non-consistent welfare and inequality measurement," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 2(2), pages 61-87, January.
    16. Fredrik Carlsson & Dinky Daruvala & Olof Johansson‐Stenman, 2005. "Are People Inequality‐Averse, or Just Risk‐Averse?," Economica, London School of Economics and Political Science, vol. 72(287), pages 375-396, August.
    17. Avlonitis, George J. & Salavou, Helen E., 2007. "Entrepreneurial orientation of SMEs, product innovativeness, and performance," Journal of Business Research, Elsevier, vol. 60(5), pages 566-575, May.
    18. Che-Yuan Liang, 2017. "Optimal inequality behind the veil of ignorance," Theory and Decision, Springer, vol. 83(3), pages 431-455, October.
    19. Chakravarty, Satya R. & Sarkar, Palash, 2022. "A synthesis of local and effective tax progressivity measurement," MPRA Paper 115180, University Library of Munich, Germany.
    20. Miguel Niño‐Zarazúa & Laurence Roope & Finn Tarp, 2017. "Global Inequality: Relatively Lower, Absolutely Higher," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 63(4), pages 661-684, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:jlorco:163782. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/caehuil.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.