THE TENDENCY OF SHIPPING COMPANIES TRANSITION FROM FAMILY BUSINESS TO CORPORATE GOVERNANCE IN THE NEXT 20 YEARS

Abstract

Despite having played an important role in the shipping sector for centuries, the shares of family-owned shipping companies have been decreasing in the last two decades. In this study, the effect of corporate governance in the maritime sector on the potential and qualifications of the family shipping business is questioned. Additionally, it is aimed to analyze the necessity of the transition to a corporate structure by identifying the deficiencies of the family companies and highlighting factors that could result in the families being unable to pass on their companies to the 3rd generation. For these purposes, the structure of family shipping businesses, the management style, the effects of generational differences, the relationships and interactions of professional managers and family management, the corporate governance structure, the life cycle of family businesses, and family values were examined. The Fishbone Diagram was applied to identify, analyze, and examine the barriers to the transition to third generations. It is understood that the longevity of the family shipping businesses generally does not last more than three generations. As a result, the effectiveness of corporate governance and the importance of shipping companies' transition from a family business to corporate governance in the next twenty years has been laid down.

Keywords

• Shipping Family Business
• Corporate Governance
• Corporate Identity
• Corporate Identity,

THE TENDENCY OF SHIPPING COMPANIES TRANSITION FROM FAMILY BUSINESS TO CORPORATE GOVERNANCE IN THE NEXT 20 YEARS

Abstract

Yüzyıllardır denizcilik sektöründe önemli bir rol oynamasına rağmen, denizcilik aile şirketlerinin payı son yirmi yılda azalmaktadır. Bu çalışmada, denizcilik sektöründe kurumsal yönetimin aile taşımacılığının potansiyeli ve nitelikleri üzerindeki etkisi sorgulanmaktadır. Ayrıca aile şirketlerinin eksiklikleri tespit edilerek ve ailelerin şirketlerini 3. kuşağa devredememesine neden olabilecek faktörlere dikkat çekilerek kurumsal bir yapıya geçiş gerekliliğinin incelenmesi hedeflenmektedir. Bu amaçlar doğrultusunda, aile deniz taşımacılığı işletmelerinin yapısı, yönetim tarzı, kuşak farklılıklarının etkileri, profesyonel yöneticiler ve aile yönetimi ilişkileri ve etkileşimleri, kurumsal yönetim yapısı, aile işletmelerinin yaşam döngüsü ve aile değerleri incelenmiştir. Balık Kılçığı Diyagramı, üçüncü nesillere geçişin önündeki engelleri belirlemek, analiz etmek ve incelemek için uygulanmıştır. Aile deniz taşımacılığı işletmelerinin ömrünün genellikle üç nesilden fazla sürmediği anlaşılmaktadır. Sonuç olarak, kurumsal yönetimin etkinliği ve denizcilik şirketlerinin önümüzdeki yirmi yıl içinde aile şirketlerinden kurumsal yönetime geçişinin önemi ortaya konulmuştur. Anahtar Kelimeler: Denizcilik Aile Şirketi, Kurumsal Yönetim, Kurumsal Kimlik, Sürdürülebilirlik.

Keywords

• Shipping Family Business
• Corporate Governance
• Corporate Identity
• Sustainability

Supporting Institution

Piri Reis Üniversitesi

Thanks

"Transition Of Shipping Companies From Family Business To Corporate Governance" başlıklı tezin başarıyla tamamlanması ve sonrasında bir bölümünün makale olarak hazırlanması sürecinde desteklerini esirgemeyen Piri Reis Üniversitesi Sosyal Bilimler Enstitüsü Müdürü Prof.Dr. Taner BERKSOY'a teşekkür ederiz.

References

1. Aronoff, Craig E., Ward, John L., (1996). Family Business Governance Maximizing Family and Business Potential, A Family Business Publication, e-Book ISBN: 978-0-230-11601-6.
2. Chukwunedu, O., S., Ofoegbu, G., N., (2018). Corporate Governance and Sustainable Development in Nigeria-Perspectives and Challenges. International Journal of Academic Research in Business and Social Sciences, 8(9), 90-104.
3. Carlock, R. and Ward, J., (2001). Strategic Planning For The Family Business, Palgrave Macmillan UK, e-Book ISBN: 978-0-230-50875-0.
4. Giannakopoulou, E., N., Thalassinos, E., I., Stamatopoulos, T., V., (2015). Corporate Governance in shipping: an overview, Maritime Policy and Management, Peer Reviewed Journal, 1-20.
5. Hansen, C., Block, J., (2020). Exploring the relation between family involvement and firms’ financial performance: A replication and extension meta-analysis, Journal of Business Venturing Insights.
6. Ilie G. and Ciocoiu C.N., (2010). Application of Fishbone Diagram to Determine The Risk of An Event With Multiple Causes, Management Research and Practice, p: 1-20. Juran, J. M., (1999). Juran's Quality Handbook (5th Edition), McGraw-Hill, NewYork, ISBN-13:978-0070340039.
7. Kruzic, D., (2004). Life Cycles of the Family Business. Harvard Business School Press, Massachusetts. p 57.
8. Larcker, D., F.; Tayan, B., (2016). Corporate Governance Matters: A closer look at organizational choices and their consequences, Upper Saddle River, N. J.: FT Press.

9. Randoy, T. (2001). Choice of Internationalization Mode among Norwegian Shipping Firms, International Journal of Maritime Economics 3 (3): 259-298.
10. Sarbah, A., Xiao, W., (2015). Good Corporate Governance Structures: A Must For Family Businesses, Open Journal of Business and Management, pp. 40-57.
11. Stopford, M., (2009). Maritime Economics, third edition, p. 4-5, Routledge, London. ISBN 13: 9780415275576.
12. Syriopoulos, T., and Tsatsaronis, M., (2011). The Corporate Governance Model of the Shipping Firms: Financial Performance Implications, Maritime Policy & Management: The Flagship Journal of International Shipping and Port Research 38 (6): 585 – 604.
13. Tarihmen, B.G., (2020). Transition of Shipping Companies from Family Business to Corporate Governance, Pîrî Reis University Master Thesis, 2020, Istanbul.
14. University of Cambridge (2020). Dignity at work policy, Human Resources, Policies & Procedures, https://www.hr.admin.cam.ac.uk/policies-procedures/dignity-work-policy (Access: 28 October 2020).
15. Verbruggen, J., (2012). Corporate Governance Within Family-Owned Businesses, MSc. Thesis, 1-6.
16. Waldkirch, M., (2020). Non-family CEOs in family firms: Spotting gaps and challenging assumptions for a futurere search agenda, Journal of Family Business Strategy.
17. Watson, G. (2004). The Legacy Of Ishikawa. Quality Progress 37(4), pp. 47-54.
18. Williams, A., (2014). Corporate governance is the key GCC Family Business Groups need to unlock full potential, June 25th, 2014 - Dubai, UAE - Family Businesses - Playing a pivotal role in the Economy, Pedersen & Partners Executive Search.
19. Zornoza, C., C., Julian, B., F., Denia, A., P., Haba, S., C., (2020). Effects of ownership structure and corporate and family governance on dynamic capabilities in family firms, International Entrepreneurship and Management Journal.