The institutionalization of family firms and its relationship with organizational culture

All around the world, there are the entrepreneurship moves of family enterprises in the basis of business world. A lot of family enterprises are seen as the most important employment center of global business world. Today, there are the entrepreneurship attempts of family enterprises in the basis of a lot of international enterprise. This situation family enterprises creates the reality of organizational culture, too. Family enterprises, mostly, work on the direction of cultural values, which were created in the past. While some of family enterprises are loyal to this culture, some of them walked away from this culture in time. Right in this point, the importance of institutionalization came out for both kinds of family enterprise. Institutionalization, generally, is seen as a matter for family enterprises Generally, family members try to protect the dominant organizational culture for their family enterprises. That is why the applications of institutionalization for change meet some resistance. In this study of thesis, the relationship of family enterprises with institutionalization and the effect of organizational culture in this process is focused on. In this last chapter of thesis, there is a survey to measure the approaches of 284 employees, which work in various family enterprises in Istanbul that they are in production sector. It is understood by the survey results that the participants of survey is evaluated their enterprises' institutionalization efforts as quality. In the end of survey, it has been reached that there was a meaningful relationship between organizational culture and family firms. Institutionalization of family firms depends on the compatibility between organizational culture and institutionalization.