DOES CULTURE MATTER FOR CORPORATE GOVERNANCE? A CASE STUDY OF TURKEY

Year 2011, Volume: 3 Issue: 1, 31 - 38, 01.06.2011

Ayşegül Özbebek Esra Kılıçarslan Toplu

Abstract

The purpose of study is to search for the basic characteristics of the relationships
between the Turkish culture and the degree of implementing the principles of
corporate governance in Turkish companies. The study involves an analysis and
an assessment of corporate governance practices in Turkey in terms of Turkish
cultural concepts and dimensions. After the analysis, it is observed that not only
small companies but also big-sized firms work still as “family business”.
Moreover some problems have been identified about this relationship. These
include interpenetration of management, stakeholders and family, not seeing the
family as independent entity from the company, unconsciousness of
institutionalization, difficulty of the process from entrepreneurship management
style to professional management style and lack of sharing knowledge and
decisions by family members with other stakeholders and so on. In conclusion, we
can say that a large part of the obstacles to the development of corporate
governance in Turkey are based on the traditional structure and culture of
organizations. In order to solve these problems, the level of institutionalization is
needed to be raised.

Keywords

corporate governance, management culture, Turkey

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