Institutionalization process in a family firm: a case study

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2018
Kubin, Gianni Berk
The aim of the thesis is to propose a managerial framework for institutionalization of a family business. A case study has been conducted to investigate the transition process and to explore how managerial framework can be implemented in practice. The main objective of the Case Study is to investigate a family firm which is in an institutionalization period and reveal its mistakes and false actions taken during its transition period. In addition, Case Company’s critical success factors to manage the transition process will also be determined through the exploratory study that will be made as a Case Study. In the first section, a literature survey has been given to point out the importance of family businesses. Several models, methods and tools on family businesses were explained and analysis of Turkish construction market were presented. Then, a managerial framework of the family-business was defined based on four managerial functions of decision-making, planning, organizing and controlling. In the following chapter, the process and actions of the Case Company in their transition period were analyzed. At the end of the study, discussion of findings was expressed. Results and recommendations for other family businesses were presented in accordance with their institutionalization process. Major recommendations for the family business are as follows; dedicate and commit every shareholder, employees and family member to change, implement a comprehensive SWOT analysis, determine long-term strategies and objectives based on the company SWOT analysis, educate and train the next generation of the family on how to manage an institutionalized business, execute a proper business and financial planning to deal with this transition period and hire an expert to guide and to manage the institutionalization process.