The impact of institutionalization of family business on strategic human resources management and company performance

In business management, when an important part of the ownership, the strategic or routine decision making bodies, and the hierarchical structure consists of family members, there is a family business at stake. In terms of family businesses, ensuring sustainable growth and intergenerational transition constitutes an important problem. Family businesses have difficulties in meeting the requirements of changing conditions due to acceleration of environmental changes and increase in complexity of management activities. In this context, the aim of the study is to explain the institutionalization in family businesses and the principles of corporate governance; to reveal the impact of institutionalization of family business on human resources management and company performance beside the human resources management and the evaluation of company performance in family businesses. The research has been conducted in 2016, limited to 200 workers of family businesses which operate in several provinces of Turkey particularly in İstanbul, Ankara, İzmir, and were selected randomly. In conducted survey study, 74 questions were asked about institutionalization, human resources practices, company performance and employee performance. In the results of research, it is seen that the emphasis placed on the institutionalization of family businesses and the existence of human resources practices have positive impact on company performance and employee performance.