Determining the institutionalization level of SMEs in the TRC2 region and investigating effect on human resources management

Enterprises; are economic units established to meet social needs. They also want to continue their lives by making a profit. Institutionalization is an important factor in ensuring the continuity of enterprises. In addition, the most important factor that will enable them to gain competitive advantage is human resources. When we look at the dimensions of institutionalization; concepts such as formalization, cultural power, professionalization, transparency, consistency and social responsibility emerge. These are concepts that are closely related to human resources in enterprises. SMEs, on the other hand, are enterprises which size is determined according to some criteria. SMEs are very important for countries and regions since they are the locomotive of economies. The need for institutionalization in SMEs arises especially after reaching a certain size. Human resources emerge as the most important factor that will provide competitive advantage in SMEs as in all businesses. In order to maximize this advantage, it will be beneficial to conduct human resources management in businesses in a legal manner. There is an interaction between institutionalization and human resource management in businesses. Especially, it is thought that increasing the level of institutionalization will contribute to the successful management of human resources in SMEs. In this context, the stratification sampling method and institutionalization and human resource management scales were applied to the owners or managers of enterprises in order to investigate the effect of institutionalization on human resources management in SMEs in TRC2 Region, which is one of the Level 2 regions consisting of Şanlıurfa and Diyarbakır provinces. Based on the data obtained, the institutionalization situations were compared according to some demographic variables, t test, correlation and regression analyzes were conducted by taking into consideration the relationship between human resources management and institutionalization and the effect of institutionalization on human resources management. As a result; The level of institutionalization perception of the enterprises in the TRC2 Region has been high. When the institutionalization levels by provinces are examined; It is seen that the level of institutionalization perception of the enterprises participating in the research in Diyarbakır is higher than the enterprises in Şanlıurfa. In addition, it has been determined that institutionalization factors have a significant positive and significant impact on human resource management practices in the companies participating in the research.