INVESTIGATION OF THE RELATIONSHIP OF INSTITUTIONALIZATION AND ORGANIZATIONAL PERFORMANCE IN FAMILY BUSINESSES

Abstract

ABSTRACT Purpose: In this study, it was aimed to examine the relationship between the level of institutionalization in family businesses and the perception of organizational performance. Method: The research was designed according to the quantitative research design. The sample group of the research consists of 207 people from 50 different family business owners and employees in Istanbul. Research data were collected by random survey method. In the questionnaire, two five-point Likert-type scales regarding conceptual structures and a demographic information form about the participants were included. In order to analyze the data, correlation analysis between variables, structural model analysis and ANOVA analysis tests were performed. Data were analyzed using SPPS 25.0 and AMOS 25.0 software. Findings: In the correlation analysis, weak, moderate and strong relationships were found between organizational performance and all sub-dimensions of institutionalization. In the path analysis conducted with the structural equation model, it was found that only internal audit activities, among the sub-dimensions of institutionalization, had an effect on organizational performance, and the assumptions that other dimensions affected organizational performance could not be confirmed. According to the results of ANOVA analysis, some differences were determined according to the number of employees in the enterprise and the generation that manages the enterprise; No difference was found between the level of the participants and the perception of organizational performance in the factors of the age of the company, the ownership structure, the sector and legal status of the company. Originality: There are different research results on the relationship between the level of institutionalization and organizational performance in family businesses. This research was carried out under pandemic conditions and during the Russia-Ukraine war. In such an environment, it is valuable to provide evidence of the impact of internal audit activities on perceptions of organizational performance.