Succession of management for institutionalisation of family-owned businesses: a research family-owned businesses in Eskisehir

Today?s globalisation, competitive conditions and ever-changing sense of business administration have made institutionalisation essential for a sustainable business and its subsistence. Institutionalisation of family-owned businesses has required certain rules and standards for all aspects in business administration and involvement of professional directors in the spheres when the management falls behind. In this context, succession of management rises as a significant matter in family-owned businesses. A considerable part of family-owned businesses fails to subsist after the founder ceases to hold his office or due to alternation of generations, which, in turn, highlights the importance of institutionalisation, consequently, succession of management so as to maintain and protect sustainability of family-owned businesses.This study intends to scrutinize the process of succession of management in family-owned businesses and the preliminary steps of such delegation. The study also includes the opinions of the founder or family-member directors on the succession of management, who are currently engaged in five family-owned businesses in Eskisehir, as well as the research on determination of preliminary works to this effect. Qualitative research method has been used in the research. As a result of the research it was observed that preliminary works for succession of management are underway in the family-owned businesses that have been interviewed, however the preliminary works for preparing the succession plan were insufficient. In addition, another fact is that the family-owned businesses are not keen on working with professional directors and are in favor of effectuating the succession process without outsourcing consultants.Key Words: Institutionalisation, Family-Owned Businesses, Institutionalisation of Family-Owned Businesses, Succession of management.