Challenges of Turkish Family Businesses Related to Effective Management Strategies

  • Huseyin Cirpan
  • Nihat Alayoglu


Interest in family businesses has recently been on the rise in Turkey. The main reason for this is that family firms dominate business life and make a big contribution to job creation and exports. However, running a family business poses intrinsic human dilemmas and unique challenges. Family dynamics tend to affect business dynamics and vice versa. Managing family relationships is an important characteristic of a family business. Managed effectively, a family business offers rewards on many fronts; if managed poorly, the business, including the family, may face many problems, leading to bankruptcy. Therefore, it is important to determine predictors of family business sustainability for the benefit of both the economy and the families owning firms.


Turkish family business Dynamics of family business Family culture Sustainability of family and business 

JEL Codes

L21 L26 M21 


  1. Adizes, Ichak. 1988. Corporate Lifecycles: How and Why Corporations Grow and Die and What to Do About It. Englewood Cliffs: Prentice Hall.Google Scholar
  2. Ateş, Özgür. 2005. Aile Şirketleri:Değişim Ve Süreklilik. Ankara: ASO Yayınları.Google Scholar
  3. Bammens, Yannick, Wim Voordeckers, and Anita Van Gils. 2008. Boards of Directors in Family Firms: A Generational Perspective. Small Business Economics 31 (2): 163–180.CrossRefGoogle Scholar
  4. Benavides-Velasco, Carlos A., Christina Quintana-García, and Vanesa F. Guzmân-Parra. 2013. Trends in Family Business Research. Small Business Economics 40 (1): 41–57.CrossRefGoogle Scholar
  5. Berrone, Pascual, Cristina Cruz, Luis R. Gomez-Mejia, and Martin Larraza-Kintana. 2010. Socioemotional Wealth and Corporate Responses to Institutional Pressures: Do Family-Controlled Firms Pollute Less? Administrative Science Quarterly 55 (1): 82–113.CrossRefGoogle Scholar
  6. Brenes, Esteban R., Kryssia Madrigal, and Bernardo Requena. 2011. Corporate Governance and Family Business Performance. Journal of Business Research 64 (3): 280–285.CrossRefGoogle Scholar
  7. Cadbury, Sir Adrian. 2000. Family Firms and Their Governance: Creating Tomorrow’s Company from Today’s. London: Egon Zehnder International.Google Scholar
  8. Carlock, Randel S., and John L. Ward. 2001. Strategic Planning for the Family Business: Parallel Planning to Unify the Family and Business. London: Palgrave.CrossRefGoogle Scholar
  9. Cetin, Sefa, Yadigarjon Gayipov, and Tahir Akgemci. 2016. Problems and Solutions in Human Resources Management of Family Business: A Research in Konya City. Postmodern Openings 7 (1): 79–105.CrossRefGoogle Scholar
  10. Chittoor, Raveendra, and Ranjan Das. 2007. Professionalization of Management and Succession Performance – A Vital Linkage. Family Business Review 20 (1): 65–79.CrossRefGoogle Scholar
  11. Chrisman, James J., Jess H. Chua, and Pramodita Sharma. 1998. Important Attributes of Successors in Family Businesses: An Exploratory Study. Family Business Review 11 (1): 19–34.CrossRefGoogle Scholar
  12. Dana, Lucio E., and Kosmas X. Smyrnios. 2010. Family Business Best Practices: Where from and Where to? Journal of Family Business Strategy 1 (1): 40–53.CrossRefGoogle Scholar
  13. De Dreu, Carsten K.W., and Annelies E.M. Van Vianen. 2001. Managing Relationship Conflict and the Effectiveness of Organizational Teams. Journal of Organizational Behavior 22: 309–328.CrossRefGoogle Scholar
  14. Demir, Özcan, and Eray Ekin Sezgin. 2014. Aile İşletmelerinde Kurumsallaşma ve Sürdürülebilirlik: TRB1 Bölgesinde Yapılan Bir Araştırma. Turkish Studies 9 (5): 707–725.Google Scholar
  15. Erdoğmuş, Nihat. 2004. Aile İşletmeleri: İkinci Kuşağın Yetiştirilmesi. İstanbul: İGİAD Yayınları.Google Scholar
  16. Gage, David. 2004. The Partnership Charter: How to Start Out Right with Your New Business Partnership (or Fix the One You’re In). New York: Basic Books (AZ).Google Scholar
  17. Gomez-Mejia, Luis R., Katalin Takacs Haynes, Manuel Nuñez-Nickel, J. L.Jacobson Kathyrn, and José Moyano-Fuentes. 2007. Socio-Emotional Wealth and Business Risks in Family-Controlled Firms: Evidence from Spanish Olive Oil Mills. Administrative Science Quarterly 52: 106–137.CrossRefGoogle Scholar
  18. Grote, Jim. 2003. Conflicting Generations: A New Theory of Family Business Rivalry. Family Business Review 16 (2): 113–124.CrossRefGoogle Scholar
  19. Gur, Nurullah, and Nihat Alayoğlu. 2017. The Importance of Trust for Partnership and Collaboration in Volatile Economic Conditions. In Global Business Strategies in Crisis, ed. Ü. Hacioğlu, H. Dinçer, and N. Alayoğlu, 139–150. Cham: Springer International Publishing.CrossRefGoogle Scholar
  20. Gur, Nurullah, and Christian Bjørnskov. 2017. Trust and Delegation: Theory and Evidence. Journal of Comparative Economics 45 (3): 644–657.Google Scholar
  21. Iwasaki, Ichiro. 2014. Global Financial Crisis, Corporate Governance, and Firm Survival: The Russian Experience. Journal of Comparative Economics 42 (1): 178–211.CrossRefGoogle Scholar
  22. Kaye, Kenneth. 1996. When the Family Business Is a Sickness. Family Business Review 9 (4): 347–368.CrossRefGoogle Scholar
  23. Kaye, Kenneth, and Catherine McCarthy. 1996. Healthy Disagreements. Family Business, Autumn, 71–72.Google Scholar
  24. Kegan, Robert. 1982. The Evolving Self. Cambridge: Harvard University Press.Google Scholar
  25. Kellermanns, Franz W., and Kimberly A. Eddleston. 2004. Feuding Families: When Conflict Does a Family Firm Good. Entrepreneurship Theory and Practice 28 (3): 209–228.CrossRefGoogle Scholar
  26. ———. 2006. Feuding Families: The Management of Conflict in Family Firms. In Handbook of Research on Family Business, ed. Panikkos Zata Poutziouris, Kosmas X. Smyrnios, and Sabine B. Klein, 358–368. Cheltenham/Northampton: Edward Elgar.Google Scholar
  27. Kets De Vries, Manfred F.R. 1993. The Dynamics of Family Controlled Firms: The Good and the Bad News. Organizational Dynamics 21 (3): 59–71.CrossRefGoogle Scholar
  28. ———. 1996. Family Business: Human Dilemmas in the Family Firm. London: International Thomson Business Press.Google Scholar
  29. ———. 2017. Saving a Family Business from Emotional Dysfunction. Harvard Business Review, February. Accessed 16 July 2017.
  30. Kets De Vries, Manfred F.R., and Randel S. Carlock. 2010. Family Business on the Couch: A Psychological Perspective. New York: John Wiley & Sons.Google Scholar
  31. Kula, Veysel. 2005. The Impact of the Roles, Structure and Process of Boards on Firm Performance: Evidence from Turkey. Corporate Governance 13 (2): 265–276.CrossRefGoogle Scholar
  32. Kula, Veysel, and Ekrem Tatoglu. 2006. Board Process Attributes and Company Performance of Family-Owned Businesses in Turkey. Corporate Governance: The International Journal of Business in Society 6 (5): 624–634.CrossRefGoogle Scholar
  33. Leach, Peter, and Tony Bogod. 1999. Guide to the Family Business. London: Kogan Page Publishers.Google Scholar
  34. Lief, Colleen, and Daniel Denison. 2005. How Family Business Culture Is Different. In Unconventional Wisdom: Counterintuitive Insights for Family Business Success, ed. John Ward, 57–76. West Sussex: John Wiley & Sons.Google Scholar
  35. Morris, Michael H., Roy O. Williams, Jeffrey A. Allen, and Ramon A. Avila. 1997. Correlates of Success in Family Business Transitions. Journal of Business Venturing 12 (5): 385–401.CrossRefGoogle Scholar
  36. Needles, Belverd E., Ahmet Turel, Dilek Sengur, and Aslı Turel. 2012. Corporate Governance in Turkey: Issues and Practices of High-Performance Companies. Accounting and Management Information Systems 11 (4): 510–531.Google Scholar
  37. Nicholson, Nigel. 2008. Evolutionary Psychology and Family Business: A New Synthesis for Theory, Research, and Practice. Family Business Review 21 (1): 103–118.CrossRefGoogle Scholar
  38. Peksaygılı, Mutlu, and Mehmet Ufuk Tutan. 2015. Aile İşletmelerinde Yönetim Devri ve Temel Kurumsallaşma Uygulamaları: Ege Otomotiv Derneği Üyeleri Çalışması. Journal of Yaşar University 10 (37): 6432–6441.Google Scholar
  39. Rutherford, Matthew W., Lori A. Muse, and Sharon L. Oswald. 2006. A New Perspective on the Developmental Model for Family Business. Family Business Review 19 (4): 317–333.CrossRefGoogle Scholar
  40. Sarbah, Alfred, and Wen Xiao. 2015. Good Corporate Governance Structures: A Must for Family Businesses. Open Journal of Business and Management 3: 40–57. Scholar
  41. Schwass, Joachim. 2005. Wise Growth Strategies in Leading Family Businesses. New York: Palgrave Macmillan.Google Scholar
  42. Strategi Co. 2015. Konya Kurumsal Yönetim Algı Araştırması Raporu. İstanbul: Türkiye Kurumsal Yönetişim Derneği.Google Scholar
  43. TUIK. 2016. Statistics. Accessed 16 July 2017.
  44. Wilson, Nick, Mike Wright, and Louise Scholes. 2013. Family Business Survival and the Role of Boards. Entrepreneurship Theory and Practice 37 (6): 1369–1389.CrossRefGoogle Scholar
  45. Yazgan, Yankı. 2008. Aile Kalmak, Şirket Olmak. İstanbul: Türkiye Kurumsal Yönetişim Derneği.Google Scholar

Copyright information

© The Author(s) 2018

Authors and Affiliations

  • Huseyin Cirpan
    • 1
  • Nihat Alayoglu
    • 1
  1. 1.School of BusinessIstanbul Medipol UniversityIstanbulTurkey

Personalised recommendations