Turkish Corporate Culture

We provide consultation on the extensive facets of Turkish corporate culture.

Learn more about the differences from German corporate culture.

Fundamentally, Turkey is characterized by a strong East-West divide, both culturally and economically, with the West being more European in its organization and the East structured more conservatively. For a successful entry into the Turkish market, cultural specificities must always be considered to minimize internal company resistance or conflicts between business partners.

Leadership Style in Turkish Companies

Turkish society is still more hierarchically organized. This is reflected in corporate structures and leadership styles. The few wealthy holdings (Koç, Sabancı, etc.) are firmly controlled by influential families. A rapid career advancement based solely on performance, without the appropriate background, is almost impossible. Emotionality and impulsiveness often characterize the leadership style.

Consequently, hierarchical relationships within companies are clearly defined, and constructive criticism from 'subordinates' is not common. The status quo is maintained by superiors through loyal and respectful treatment of their subordinate employees. Recently, clear efforts have been observed to gradually adopt Western-influenced leadership styles from the USA and Europe. Companies are therefore increasingly pushing for their executives to gain international experience.

Strategies for Market Entry into Turkey

To leverage the Turkish market, the first step is to decide which market entry strategy to choose: Should a new company be founded? Is a strategic cooperation with a Turkish partner or even a joint venture desired, or should an existing Turkish company be acquired? These strategies have different advantages and disadvantages that must be weighed on a project-by-project basis:

Company Formations: Low market entry speed due to the need for a new setup, but low cultural risk, as the right initial mix of employees from the parent company and local staff generally promises success for the concept.
Strategic Alliances/Cooperations: A safe alternative that avoids major risks.
Joint Ventures with a Turkish Company: Pooling resources carries the risk of cultural conflicts; however, a clear division of tasks between the companies minimizes this risk.
Company Acquisition: Due to the existing corporate culture and organizational structure, there is a high risk of cultural conflicts if personnel changes are not handled with intercultural competence (a common mistake!). Extensive replacement of the management level should be avoided.

Challenges in Building Effective and Efficient Organizational Structures

The cultural differences between Western-influenced companies and companies in Turkey also become apparent when establishing an effective organizational structure within a Turkish company. The following factors must always be considered and adequately addressed to avoid internal resistance:

Turkish companies tend to be more focused on individuals rather than clearly defined tasks.
However, this also entails a strong commitment to the company.
The formation of groups can make it difficult for new employees to integrate.
Respect for leaders can make weak control appear sufficient.