Impact of Institutionalization on Employee Performance: A Research on SMEs

Abstract

The aim of this research is to examine how the adoption of institutionalization in SMEs will affect employee performance level. Formalization, professionalization, flexibility, transparency, consistency, cultural power and social responsibility are suggested as the principles of the concept of institutionalization. As a result of the literature review, it has been assumed that adopting the principles of institutionalization will affect employee performance significantly and positively. Based on this assumption, the accuracy of the assumptions was researched (investigated) on 313 employees working in SMEs operating in Büyükçekmece district of Istanbul. Descriptive statistics, regression and correlation analysis were used in the analysis of the data. As a result of the analysis, it has been concluded that all of the principles of institutionalization and institutionalization have a significant and positive effect on individual
employee performance.