The relationship between culture, structure, and employee empowerment in family businesses: The mediating role of information asymmetry

The average lifespan of family businesses in Türkiye is 25 years. Only 30 percent of these businesses survive to the second generation, and 12 percent to the third. The percentage of those who survive to the fourth generation remains at 3 percent. Findings from the literature review reveal two primary reasons for the demise of family businesses. The first is internal family relationships, particularly conflict, and the second is a lack of innovation. Family businesses where family members are assigned to all departments face managerial challenges. The lack of professional managers and empowered employees in the family business exposes the company to decreased business performance and sustainability issues. This study investigates the relationship between the organizational structure and culture of family businesses and employee empowerment. One of the two models analyzing employee empowerment focuses on information processing. Companies can leverage the talents and expertise of employees by delegating decision-making to the representative with the best knowledge of a particular decision. It is believed that empowering managers with the same level of knowledge as the business owners will benefit the business. The assumption that full authorization cannot occur when information asymmetry occurs and that authorized employees cannot be effective is being investigated. Family businesses operating in the TR33 region were selected as the research population.