The efforts to institutionalize of enterprises to general characteristics of family enterprises effective

Institutionalization means scheduling all the processes in companies and then appointing the relevant individuals or departments in this regard. Surviving in the globalising world, on the one hand, and the necessity to comply with EU norms, on the other, are the two most important matters especially for SMEs to complete their institutionalization rapidly and to switch to a better institutional management. In general, institutionalization of the family enterprises with SME-like features should be regarded in this perspective. The two main features distinguishing the family enterprises from others are the facts that family members are effective in the management mechanisms, and that they tend to be sentimental. Good management in family enterprises depends on the strong ties of trust among the family members. When they are well-managed, not only do the family ties get stronger, but their efficiency and performance also increase. As all through the world, family enterprises have a crucial role in economic efficiency in Turkey as well. These family enterprises having important shares in economic efficiency need to institutionalize in order to perpetuate this role both effectively and for a longer period. The main factor determining this longevity is the institutionalizing of these enterprises, which necessitates their management to be in compliance with rational and modern business administration and requires that responsibilities, duties and authority relations be determined. Some important questions to be answered in institutionalizing family enterprises are as follows: according to which principles will the positions be filled; how will the authority be assigned; how will decisions be made; who or which mechanisms say the last word? Efforts to institutionalize start by looking for answers to these questions, and change the general characteristics of family enterprises; that is, thanks to institutionalization, the system built in the company will determine the relations among the family members who are tied to each other with trust and sensation. Therefore, by transforming the general characteristics of family enterprises based on trust and sensation in the view of rational business administration principles, the efforts to institutionalize provide the permanence of the company.