Purpose – How does downsizing affect long‐ and short‐term organizational performance? The present study aims to address this important question and attempts to extend previous research by examining the effect of both personnel and assets reduction on long‐ and short‐term firm...

Summary In this longitudinal study we examine how core changes, dwindling membership and ideological embeddedness, lead to financial distress in a unique organizational setting: declining Israeli kibbutzim. We analyze six years of core changes and their effects on financial distress for 102...