The impact of organizational change on entrepreneurship in community settings

Abstract

PurposeThe purpose of this paper is to investigate the impact of organizational change upon entrepreneurship in communities such as the Israeli kibbutz, which underwent during the last two decades a process of crisis and change. Based on a theoretical model that identifies how cultural orientations of individualism versus collectivism affect the entrepreneurial process, attempt is made to analyze whether and how the move from organizational collectivism towards organizational individualism influences the volume and type of entrepreneurship in community settings.Design/methodology/approachA comprehensive questionnaire has been administered to a sample of 60 kibbutzim in 1997 and in 2004. The questionnaire includes issues of organizational culture, structure and business orientation, as well as reports on the ventures initiated during the relevant years. The data received by means of the questionnaire are analyzed by quantitative statistical methods. In‐depth interviews with office holders in a small number of kibbutzim add understanding of the underlying ongoing processes of change.FindingsThe results of the study show that after processes of organizational change, resource leverage is still characterized by induced strategic behavior, but venture policy is no longer one of nurturing. Market criteria such as profitability and competition at the organizational level promote individualistic‐oriented motivation and economic behavior of entrepreneurs within the community setting.Research limitations/implicationsUsing a model of corporate entrepreneurship is the inherent limitation of the design of this study. Future research should consider alternative theoretical models for the analysis of entrepreneurship in community settings, focusing on independent variables such as human and social capital of the community entrepreneur.Originality/valueThe paper provides an investigation into the influence of organizational change upon the volume of entrepreneurship in a community setting.