Formation of organizational structural parts & institutional dimensions and life cycle relation in small and medium size enterprises

Institutional theory (IT) has had relatively little influence on managers and practitioners outside academia. In part, this may be explained by the diminished role of management in determining organizational survival. The assumption that managers have no significant role within IT, however, is not accurate. The managerial applications of IT are not just fully articulated. The very qualitative research is offering an application on the role of IT in management by studying the relationship between organization theory and institutional theory. Allthough Small and medium-sized enterprises consist 96 per cent of all the organizations in the world, academic interest and researches in SMEs in the context of life and formation of the formalized organizational structures are well below it. This research aimed to express the growth of SMEs by a life-cycle model and studied the relationship between formation of organizational structure, formation of institutional dimensions of the organizations and organization's life-cylces. One another objective of the research has been to clarify the confusion on the use of the meaning of institutionalisation in Turkish language. The research conducted in 20 small and medium-sized enterprises and a qualitative approach used. In conclusion, the relation between the life-cycles, organizational structure and the institutionalisation process of SMEs has been expressed. The originality of the work is the methods developed for measuring the evolution of the organizational structure and institutionalization processeses (institutionalisation). Moreover, institutionalisation is sort of a concept whom attached variety of different meanings in Turkish business and even academic circles, far from its genuine meaning. Clarifications have been made to clear the confusion on the institutionalisation concept. Key Words: SME, Small Enterprises, Life cycle, Institutionalisation, Institutional dimensions, Organizational Structure