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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.