Institutionalization of construction firms: Turkish contractors’ experience

Yavuzyılmaz, Özlem
Literature studies on institutionalization are mainly predicated on repetitive work performing sectors, in which firms are more prone to developed institutionalization processes in literature. But, in this study, it is aimed to examine reasons behind low tendency of construction firms to institutionalization process in Turkey. In literature, two main obstacles against institutionalization are shown as firms’ resistance to change and founder family acts on firm. So, family businesses and their effects on firm operations are also included to this study’s scope, with business growth and institutionalization process. Conducted interviews are based on a questionnaire which is prepared to identify; cognition level of institutionalization, factors leading firms to institutionalization, firms’ established system perform in the name of institutionalization and finally summarize experiences firms gained from institutionalization process. Twenty-one interviewed contractor firms enlightens acts of construction firms in Turkey, because like interviewed firms, 70% of construction firms in Turkey is still governed by 1st generation. Results indicate that construction firms seem to apply most of the systems offered by literature for institutionalization because of rapid business growth. In general they refuse a high institutionalization level because of construction projects’ temporary and unique nature, causing a highly competitive and uncertain sector requiring a highly flexible firm structure. Institutionalization is mainly processed to enhance control, it is not considered to take place for balancing family and firm relationships. This is because of high family dominancy in firms, leading to a highly jeopardized sustainability.


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Citation Formats
Ö. Yavuzyılmaz, “Institutionalization of construction firms: Turkish contractors’ experience,” M.S. - Master of Science, Middle East Technical University, 2010.