The role of board structure on institutionalization process of family business

Family owned enterprises that establish the majority of the existed companies in Turkey, are the profit-making companies that have been constituted by the individuals who have line of descent, in order to produce commodities and service. Even they have made great contributions to the economy of the country, and not maintaining the sustainability emerges a problem against us.Due to the globalization process, competition increases rapidly both in Turkey and in the world and within this competition environment, enterprises requires institutionalization in order to maintain their existence. Adaptation to the changed world because of the global competition becomes more important especially for the family owned companies that they have emotional bonds in the business and as consequence of the performed studies the opinion regarding that this can be possible due to institutionalization increases gradually.Institutionalization process have examined in two stages as the institutionalization of the family relations and institutionalization of the company, and the most important task has been given to the board of directors of the companies.The purpose of the study that was performed within this frame, is to examine the institutionalization process of the family owned enterprises that have gradually gain importance in the business world and management literature, together with the globalization and to analyze the affects of the structures of the board of directors upon this process, through ENKA İnşaat ve Sanayi A.Ş. sample, which is one the prominent family owned enterprises of Turkey.