• Vaden in the press
• 08 أكتوبر 2024

VADEN Chairman Acar: Institutionalization Is Indispensable for Growth

As one of Turkey’s largest automotive spare parts manufacturers, Konya-based VADEN Chairman of the Board Seyit Acar explained the institutionalization and twin transformation processes of their company at a panel he attended as a speaker. Acar stated that in the production journey they started as a family business, they have begun integrating the third generation into the company after the second generation. He emphasized that family businesses must establish institutional structures for growth and sustainability.

"Institutionalization is indispensable for our national wealth"

Emphasizing that companies are of great importance not only for families but also for society as national wealth, Seyit Acar said, “Our companies are our most valuable assets. We have responsibilities towards our state, society, employees, customers and suppliers. We can clearly say that no company goes bankrupt due to unemployment; it fails because it cannot manage cash flow. We must be able to pass our companies on to future generations. In order for companies to exist for many years, they must take steps that preserve competitiveness. Thanks to these steps, our company, which had 3 employees in 1995, has now reached employment of 1,500 people. We rank 37th among Turkey’s second largest 500 companies in production-based sales, 448th among the top 1,000 exporters, and 61st among the top 250 in R&D investments. In the coming years, we aim to increase employment and exports by producing higher added value. In addition, we have completed our digital and green transformation investments and finalized our land, machinery and housing planning until 2040. The cost of all this is institutionalizing our company. We continuously strive to improve ourselves in institutionalization,” he said.

"We are entering a period of increasing competition"

Stating that the company will go public next year to achieve a stronger institutional structure, Seyit Acar said, “We have been undergoing independent audits since 2012. We operate with full transparency. We decided to go public next year in order to manage sales organizations in different regions of the world. Our aim is to establish independent management, executive and audit boards to place the company on stronger foundations. In the coming period, competition will increase with green transformation and digitalization processes. Financial literacy and adaptation to digital transformation are critically important for competitiveness.”

"The level of institutionalization must be well balanced"

While acknowledging that institutionalization is essential for company growth, Acar pointed out that excessive institutionalization can also cause problems, saying, “Institutionalization is important, but excessive institutionalization beyond the company’s structure may lead to slowdown. For companies to be long-lived, they must act with collective wisdom. By taking examples from developing companies in Turkey, they should establish a balanced institutionalization model. Unfortunately, the world grows by uniting, while we lose competitiveness by fragmenting. To enhance the competitiveness of companies in Turkey, the institutionalization process must be pursued decisively. Overcoming economic difficulties requires working harder through institutionalization and ensuring income justice.”