New Article: Edom et al, Privatization Processes of the Industrial Activity of Israeli Kibbutzim

Edom, Sara, Ram Edur, and Yoram Kroll. “Motives, Expectations and Results of the 2000–2009 M&A Privatization Processes of the Industrial Activity of Israeli Kibbutzim.” Journal of Co-operative Organization and Management (early view; online first).

 
URL: http://dx.doi.org/10.1016/j.jcom.2015.11.006
 
Abstract

In the 20th century, almost all of the 350 kibbutzim’s industrial plants were solely owned by the kibbutzim, which were managed like family communal cooperatives. In 2011, almost all of these cooperative-like firms were privatized and started to employ a public type of management. More than 50% of them went public by IPOs or underwent an M&A process. Questioning those who were involved in the above process as well as the details of financial reports before and after the IPO and M&A events, reveal that in contrast to the expectations and incentives, the IPOs and the M&As harmed the profitability of the acquired industrial firms compared with the industrial firms that remained fully owned by the communal cooperatives of the kibbutzim.

 

 

 

New Article: Sofer et al, The Communal and Renewed Kibbutz

Sofer, Michael, Ephraim S. Grossman, and David Grossman. “The Communal and Renewed Kibbutz: Ideology, Management and Institutional Change.” Studia Obszarów Wiejskich 38 (2015): 19-38.

 

URL: http://dx.doi.org/10.7163/SOW.38.2

 

Abstract

This study considers the roles of management and ideology in modifying the sustainability of communal systems. We approached this issue by discussing the major forces that shaped the planned kibbutz and the recent processes that have brought about its current transformation. Using a questionnaire-based survey we tried to reveal the relative importance that the members attach to traditional kibbutz values and their perception of the tension between the original ideology and the management strategies that have been imposed on the communal society by both external and internal forces. The findings indicate that pragmatism tends to prevail over ideology and communality has difficulty in functioning effectively in a highly complex and changing world. It points to the weakening of the communal system and to growing disengagement from principles of equality. However, the process and project of reshaping the kibbutz is ongoing.