The effect of budget executions on business planning and control of the activities in family-owned businesses and one implementation

Many of the businesses in our country operate as family-owned businesses and sustainability is ensured in businesses by transferring the business from one generation to the next. In this respect, it is expected that those who can carry out the transfer of family businesses to the next generations in a healthy way will have achieved a certain level of maturity and institutionalism. When these enterprises are evaluated in terms of continuity and the attainment of maturity levels, it is of critical importance for enterprises to set targets in certain periods and to take performance-based methodologies as a basis in reaching these targets. In the implementation of these methodologies, budget applications and the contribution of these applications to the planning and control of activities in line with strategic management principles in family businesses were investigated in this study. In order for budgets to provide the desired contribution to business performance, especially in family businesses, it is necessary to understand the participant behaviors in the budgeting processes and implementation stages. In the study designed in this framework, explaining the business budgets and family businesses in a wide framework, it is aimed to examine the relationships between budget practices, the perceived importance of the budget, the budgetary control system, budgetary planning and budget implementation strategy as the determinant of the planning of the enterprise and the control of the activities. In this context, in the study, the results obtained by the partial least square structural equation analysis of the data obtained through the questionnaire from 175 participants who took part in the budgeting processes in the province of Bursa are included. In the light of the findings obtained, the performance increase of the use of budgets in family businesses operating by adopting the budget implementation strategy and the benefit of the budget control system increase significantly. The study also found that the budget implementation strategy is an important antecedent that causes a significant increase in budgetary planning and the perceived importance of the budget. In this respect, it has been determined that the budget implementation strategy in family businesses increases the importance attributed to the budget and contributes to the control of planning and activities in family businesses by indirectly affecting the budget control system and organizational performance by increasing the planning efficiency by laying the groundwork for budget planning.