Institutionalization syndrome in family business and a study on the family companies in Istanbul IOSB

Nowadays, most of registered companies both in our country and the other countries are family companies. We can say that family business has a great importance for country economy. Family businesses are very common in all over the world and can be both a small shop or a multinational corporation. However, the biggest disadvantage of these companies is their short life periods. Heavy competition in the last few years make the family companies harder to survive and force them to improve new strategies. To become an institutional company is one and maybe the most important strategy. Institutionalization has become an indispensable factor for family companies. By courtesy of institutionalization, a healthy development will come true. Healthy development means renovation of organizational structure, meeting increasing or changing demands of employees etc. in parallel with company development. In this study, we will emphasize family business conception, main characteristics and history; institutionalization conception, institutionalization process, reasons of institutionalization necessity in family companies.