Determining the Level of Institutionalization in Family-Owned Shipping Businesses

Abstract

The levels of institutionalization have varied in organizations affecting their success and sustainability in business. The objective of this study is to develop a model for determining the level of institutionalization in which family-owned organizations operate the Level of Institutionalization for Organizations (LIFO) by a collaborative social research. This research contributes to the institutional theory by developing a model for an innovative approach to harmonize family and business at the institutional level with 68 variables derived from institutional theory. It also contributes to family businesses in maritime transportation as the LIFO model was used to determine the institutionalization level of shipowners in general as family-owned businesses. The model is based on the variables in both new and old institutional theory. A semi-constructed questionnaire was conducted among 64 out of a total of 244 of shipping companies registered within the country that operate globally. The data is collected through face to face interviews carried out with the heads of family-owned businesses. The data is used for qualitative content analysis. The results reveal the establishments of these organizations were set on firm bases in the pre-institutionalization level, there were fluctuations in doing business and differing attitutes among organizations in the same field in the semi-institutionalization level, there are bigger issues in the sustainability and insitutionalisation of family in the level of full-institutionalization.