Disintegration of the partnership in family business and the importance of institutionalization for prevention of disintegration: A survey in kilis

Nowadays, most of registered companies both in our country and the other countries are family companies and the companies have a significant role on a country?s economy. The family businesses are the indispensable part of economy not only in the world but also in our country, with their having efficacy on national income, creating employment, enhancing local and regional development; thus all these issues make sustainability and achievement of family businesses more crucial. Globalized world economy- and harsh competitive conditions as its consequence- are threatening family businesses, which are important for national economies. To prolong life spans of family businesses and to ensure succession of businesses to next generations necessitate a process consisting of succession and/or disintegration of the companies has arisen. The surveys conducted on the problems that are tend to be seen in family businesses indicate that the main reason for disintegration of a family company is lack of institutionalization despite the company has reached a particular level of size, and has the necessary conditions. The factors such as family and business system, conflicts, the efficacy of women in business enterprises, transfer of authorization affect the partnership in family enterprises; In other words all these issues affect the transition through the generations. A conception aiming to solve the problems in family and enterprise, sustainability of family businesses means to live through the generations. Researches have shown that less than 1/3 of family businesses can succeed from first to second generation; and only half of them are able to see the 3rd. In this study, the disintegration and the significance of institutionalization on preventing disintegration of family companies is analyzed. Disintegration of the family businesses running in Kilis has tried to be analyzed by means of a case study which was conducted after the relevant review of the literature about this survey.