Gender Factors Affecting Family Business

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UNDER PEER REVIEW AN EMPIRICAL ANALYSIS REGARDING FAMILY IMPACT UPON THE BUSINESS SUCCESS: A CASE STUDY IN TURKEY Abstract: This study was conducted on the basis of a survey analysis. Survey was distributed among the top management and executives of the family owned firms in Turkey, resulting in 75 responds obtained in total. Although the number of respondents might be perceived as low, the results seem to be reliable and valid, according to the tests of Cronbach’s Alpha, Criterion related validity testing, and Structure validity testing. The main results of the research suggest that the most important factors affecting the succession process are family relations, interpersonal relations, and the succession planning process. In addition, gender…show more content…
Historically, most of the large firms, which are currently held publicly, were initially established as family businesses. Many family businesses consist of non-family members as employees, but, specifically in smaller family businesses, the highest positions are usually given to family members. Family-owned businesses make up a very significant portion of all businesses worldwide. They range from very small stores to multinational corporations. More than 80% of all businesses in the world are family-owned (Peterson- Withorn, 2015). According to Flören (1998, pp. 121 – 122), the most important elements of a family business are directly related to the strategic decision- making and the intention to leave the business to the family. On the other hand, Sharma (2004, p. 4), attributes the significance to the ownership and concentration of management within a family unit. But, the common element in both of these studies is the aim to increase the intra-organizational family based relatedness. Other components that family- owned firms share are as follows (Ward,…show more content…
This uniqueness arises from the integration of family and business life, and due to intertwined work and family conditions. Integration of family and business is one of the main starting points in explaining the strategic direction and the decisions made in the family firms (Chrisman et al., 2005). Different frameworks of corporate governance are used to explain the conflicts that arise due to conflicting interests of ownership and control in the firms (Child and Rodrigues, 2003). In Turkey, managers are often perceived as an extension of founders, managing with autocratic leadership style (Marcoulides et al., 1998). The traditional companies are characterized by a high degree of centralization, governed by a patriarch, and often lacking any formal rules and procedures (Kozan and Ilter, 1994). This may make the succession process even harder in practice, while researchers largely evaded the investigation of the resistance factors. Businesses in Turkey were investigated regarding the organizational structure and hierarchical relations (Pasa et al., 2001), the planning processes (Iseri and Demirbag, 1999), the nature of decision making (Sozen and Shaw, 2002), and most specifically to the problem of this study, the investigation of dynamics in succession planning within the family owned Turkish companies. Therefore, it seems that the literature on the family firms in Turkey provides

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