Sibel Yamak

State as a stakeholder

In this paper, we want to focus on the interactions of shareholder theory, stakeholder theory, institutional theory and agency theory in terms of corporate social responsibility. We will specifically study this issue in the context of commercial banks in the financial sector. Financial firms appear to be subject to strong technical and institutional pressures. They are also more opaque and subject to heavier regulation than their non‐financial counterparts. It appears that the application of agency‐based assumptions to the financial sector is inadequate in explaining corporate governance and related social responsibility practices. In this context, the structure of asymmetric information seems to be more complex and multi‐dimensional. It takes place first between the depositors, the bank and the regulatory authorities; second, between the shareholders, the bank and the regulatory authorities; last, between the borrowers, the managers and the regulatory authorities. These parties also constitute the firms’ stakeholders. In this respect, the state appears to be a major stakeholder and it is in a position to affect all other bank/stakeholder relations through its regulations and participation in the financial sector. These are the factors that intensify institutional pressures in this sector. The institutional embeddedness inherent in a special context is likely to affect stakeholder position and attitudes. Therefore, this paper aims to investigate the conflicting nature of being a stakeholder under institutional pressures and it articulates the factors that determine the behavior of the state as a stakeholder in shaping corporate social responsibility practices of firms.

Changing institutional environment and business élites in Turkey

Purpose – Historical and institutional influences on the backgrounds of business elites have received little attention despite the fact that they are closely related to corporate governance issues. The present study aims to examine the issue of continuity and change in the characteristics of the business elite over a period of some 60 years between 1923 and 1980 in Turkey, a late‐industrializing country, where significant changes have taken place in the politico‐economic environment of business and the context of industrial development has evolved from etatisme towards family‐dominated big business.Design/methodology/approach – This paper attempts to substantiate the arguments on the institutional roots of business elite characteristics by drawing upon all previous studies conducted on Turkish business elites for the period 1923‐1980. For comparative purposes the study also makes reference to other elite groups in the country, namely, managers of state economic enterprise and upper echelons in the state b...

The Role of External Environment in Upper Echelons Theory A Review of Existing Literature and Future Research Directions

Upper echelons research has largely focused on the antecedents and consequences of top management teams (TMTs) from the team and firm levels of analysis. This paper reviews empirical research on TMTs with a specific emphasis on the role of the external environment. Applying institutional and industrial organization theories, a cross-level conceptual model outlining the direct, mediating, and moderating effects of the external environment on upper echelons is developed. This review distinguishes between industry and institutional levels of analysis and three types of environmental characteristics: stable, dynamic, and transformational. The paper further explains the relationships between each category of characteristics and firm upper echelons, and outlines possible avenues for future research.

Self-sustaining pattern of finance in small businesses: evidence from Turkey

Abstract The aim of this paper is to examine financial source preferences of small businesses. In doing so, it assumes an integrative perspective that combines financial theory with small business management literature. The study is conducted on 101 small hotels using structured questionnaires. It identifies sources of funds utilized at three different situations; including start-up, ongoing operations and future investments. Furthermore, it intends to relate financing patterns to strategic responses of owners to financial constraints. According to empirical findings, two patterns of financing emerge which are both self-sustaining in nature. Institutional debt is not perceived as a viable source, thus utilized to a negligible extent. Findings have significant policy implications for the improvement of financial environment relating to small businesses.

Understanding the Changing Nature of the Relationship between the State and Business Elites

Abstract In this study, we aim to understand how the relationship between state and business elites and underlying power dynamics develop in the face of neoliberalism and globalization in a state-dependent context. For this purpose, we draw on a qualitative research with in-depth interviews with elites from 65 companies which are ranked among the 500 largest Turkish firms by the Istanbul Chamber of Industry. Major contribution of this work is that we illustrate how globalization or internationalization provides a limited tool for business elites to escape the domination of the state in a state-dependent context. The only exceptions to this rule of state domination among business elites are the elites who hold double citizenships and whose initial investment background is in a foreign country. This exceptional group of elites enjoyed higher latitude of action in their interactions with the state. For the rest, state remains as an influential mechanism of coercive power to which elites are subjected. Last but not least, in spite of the connections between business growth and the state, the business elites are generally distrustful of politics and politicians and this mistrust is manifested in different ways. Overall, we illustrate the significance of the historical context and turning points in accounting for the changing nature of the relationship between elites and the state in Turkey.

Between a rock and a hard place: corporate elites in the context of religion and secularism in Turkey

Drawing on discourse analyses of 36 in-depth interviews with elite business people from Turkey, the study identifies the networking patterns of new and established business elites in the context of economic liberalization and socioreligious transformation of the country. Through a comparative analysis of the so-called secular and religious elite networks, we demonstrate the role of institutional actors such as the government, and identity networks, based on religion and place of birth in shaping the form and content of social networks among business elites in Turkey. In order to achieve this, we operationalize Bourdieus notion of theory of practice and Granovetters theory of social networks, illustrating the utility of combining these approaches in explicating the form and content of social networks in their situated contexts, in which power and divergent interests are negotiated.

Collaboration of foreign investors with local family business groups in Turkey: implications on firm performance

This study investigates the nature of the collaborations of the foreign investor with the local family business groups, drawing out a range of possible implications on performance. Embracing a multi–theoretical approach, we use a panel data regression analysis on a sample of non–financial companies listed in Istanbul Stock Exchange during the period of 1999–2002. We find that the interaction of the foreign investor with local business groups may have both positive and negative consequences on performance, depending on the nature of the collaboration. In the case of local firms, there is a positive relationship between performance and the presence of a chairman who is a member of the family that owns the business group. Having such a chairman seems to have a negative effect on performance when foreign investors are involved. However, equity partnership with a local family business group contributes positively to the performance of foreign–involved companies.

New Turkish Business Elites: Resources, Networks, Boundaries and Mobility

In this chapter, we explain how the new Turkish corporate elites mobilise their varied resources in order to seek integration into the business community through their international, national and local networks. Our findings show that intensive use of economic, social and cultural resources accounts for the success of Turkish elites in navigating their way from local settings to international fluency. We draw upon the relational sociology of Bourdieu and the network theory of Granovetter in order to frame the theoretical background of our study. We have three main findings: First, local and international networks are more accessible to new business elites than national networks. In order to access national networks new business elites require higher levels of economic capital. Second, new business elites in Turkey do not have elite tastes. In fact, our study demonstrates that the new elites have common rather than refined tastes. This may be explained by the fact that they have only recently joined elites. Third, education has been exceptionally instrumental in allowing new elites to access elite status in Turkey. The significance of education in allowing for class mobility cannot be overstated in the case of Turkey.