18th Economics & Finance Conference, London

BUSINESS SUSTAINABILITY STRATEGY INCORPORATING COMMUNAL CONCERN, EXPANSION, INNOVATION, AND GLOBALIZATION

YAFFA MOSKOVICH

Abstract:

This research describes the management approach underlying the strategic business model at a kibbutz factory situated in a non-privatized collective community. This strategic model explains the remarkable success and sustainability of “T Industries” (a pseudonym, which the initials “TI” will represent)—which ranks as a leading kibbutz enterprise. The research is a case study that examines a variety of business strategies that have enriched that factory and the cooperative community that owns the enterprise. Specifically, this research examines the impact of the communal aspect of TI’s business strategy and how this component has contributed to the sustainability of the enterprise. The business strategy explains the outstanding success of “T Industries”—which ranks as a leading kibbutz enterprise. The research utilized qualitative methods, using deep interviews combined with document analysis. The study found that the strategic management of T Industries comprises three major components: (1) socialist concern for community wellbeing; (2) an external strategy that focuses on expansion and rendering the industry global, with numerous organizational alliances and acquisitions; and (3) an internal strategy that includes self-criticism, professionalism, creativity, and organizational learning. Strategies of the top management have the ability to integrate conflicting methods into their strategy while promoting innovation and originality. The findings show that communal organizational strategy can increase commercial success and reassure its sustainability.

Keywords: business strategy; sustainability; kibbutz industry; kibbutz community; organizational change

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