Turkish Companies Research Articles

THE IMPACT OF LOGISTICS 4.0 ON SMART WAREHOUSE MANAGEMENT: EXAMPLES FROM COMPANIES IN TÜRKİYE AND A BIBLIOMETRIC ANALYSIS FOR FUTURE TRENDS*

This study examines the applications of smart warehouse systems in Türkiye from the perspective of Logistics 4.0. In the context of the advancements in digitalization and automation brought about by Industry 4.0, smart warehouse systems play a pivotal role in optimizing warehouse operations and enhancing supply chain management. The study provides a detailed account of how leading Turkish companies, including Arçelik, Yemek Sepeti, and Borusan Lojistik, integrate these technologies and highlights the advantages of such integration. The study underscores the strategic importance of smart warehouse systems in Türkiye’s logistics sector, emphasizing findings that these technologies increase operational efficiency, enable real-time monitoring, reduce costs, and enhance customer satisfaction. Another significant aspect of the study is a bibliometric analysis conducted using the keywords "smart warehouse" in the Web of Science database. The objective of this method is to conduct a systematic review of existing scientific literature in order to identify new research trends and areas of interest. This analysis significantly contributes to the deepening of the existing knowledge base in academic circles and illuminates future research directions in this field. In conclusion, the objective of this study is to provide a comprehensive analysis of the current state of smart warehouse systems in Türkiye and to offer strategic recommendations for digital transformation processes in the logistics sector.

Quality assessment of corporates’ sustainability web pages from accessibility, usability and security perspectives: Türkiye evidence

Corporate sustainability web pages reflect strategies to mitigate environmental impact, crucial for long-term business continuity. In this manner, ensuring accessibility, usability, and security in these pages is essential. This article evaluates the quality of sustainability web pages of corporates from accessibility, usability, and security perspectives. Our sample consists of 71 Turkish companies and the analysis was conducted on their sustainability web pages using automatic testing tools. Thus, the results show indicate a necessity to enhance the overall quality of sustainability web pages among Turkish corporations. The findings of this research also address the major problems and serve as constructive feedback for web administrators and developers, guiding them towards enhancements in accessibility, usability, and security aspects of these web pages. Therefore, this research seeks to provide valuable insights into the performance of these web pages, thereby contributing to the advancement of corporate sustainability communication and transparency.

EVALUATE THE IMPACT OF CAPITAL STRUCTURE MODELING ON THE PERFORMANCE OF PRODUCTION PROCESSES

The research aims to explore the impact of capital structure modeling on production business performance in order to arrive at a conclusion. Data were collected based on input from six Turkish cement producing companies. Analysis of the collected data was then used to achieve the goal. In the first part of the study, the concept of capital structure was explained, and the theories, namely the irrelevance theory, the trade-off theory (TOT), and their types, were discussed. The determinants of all capital structures and company-specific and capital structure models were also identified. The second part of the study was the practical part, where data on Turkish companies was used to achieve the goal. An input analysis of the capital structure of the selected sector was performed in order to generalize and clarify the conclusions regarding the capital structure of the analyzed companies. Where the main problem lies in determining the indicators of the capital structure that affect the performance of productive businesses. Performance was evaluated using economic value added (EVA) scale, correlation matrix, Cohen's scale, and SPSS. We have developed some capital structure measures to investigate the links between these indicators and the overall performance of the organization. Correlation research results have shown significant improvements using regression analysis and principal components analysis to study the impact of certain unrelated elements on the overall success of the company. As a result, we recommend developing a new option that is willing to bear the risks associated with both options. The results of this study will serve as the basis for further research, including the collection of more relevant data and a further set of analyses.

How does excess cash affect corporate financial performance?

PurposeThis article analyzes the moderating role of investment opportunities, business risk and agency costs in shaping the nexus between excess cash and corporate performance.Design/methodology/approachThis research uses dynamic regression models (two-step system generalized method of moments) to analyze the data related to 200 Turkish companies listed on Borsa Istanbul (BIST) for the years between 2009 and 2020.FindingsThe findings indicate that when excess cash increases, the financial performance deteriorates only for firms with lower investments compared to firms with more investments. In addition, investment contributes to better financial performance for firms that hold cash surplus, whereas the influence of investment is insignificant for firms that have insufficient cash. Agency costs of equity exacerbate the adverse impact of excess cash on financial performance while agency costs of debt mitigate this effect. Excess cash reduces the financial performance of highly leveraged firms. However, this impact becomes insignificant when debt ratio decreases. The findings also show that investment has more significant role than business risk in building the precautionary motive to hold cash.Research limitations/implicationsThe findings of this article are limited to the Turkish market. Future research is still needed in other emerging markets to compare the results and reveal more about the effect of excess cash on firm performance, and how other factors can change this effect.Practical implicationsThe findings verify the increased significance of excess cash in the presence of investment opportunities and difficulties in accessing external funds. Nevertheless, the role of the equity related agency problem in reducing the benefits of cash surplus confirms the necessity of policies that support corporate governance, especially in emerging markets.Originality/valueThis article, according to the knowledge of author, is the first to examine the role of agency costs associated with debt and equity, and the compound effect of investment opportunities and business risk on the nexus between excess internal funds and corporate financial performance in emerging markets.

Multiscalar Industrial Strategies and Variegated Foreign Investment in China

ABSTRACT The Belt and Road Initiative (BRI) enables investment from outside of Global North, such as the Gulf countries and Latin America, to enter the Chinese market. China’s local governments play an important role in facilitating FDI by new actors. This research uses a case study of three Turkish companies to explore the motivations of companies from developing countries to localize their operations in China, and the motivations for local officials to diversify their FDI portfolios. The results show that local governments are significantly more receptive to investments by developing countries due to inter-regional rivalry within China. The central government’s strategy of prioritizing high-technology industries works against developing countries, as their investments usually come from low-technology heavy industry companies. Turkish companies feel unwelcome by local governments except for the relatively large size of the capital they bring in. The findings demonstrate the transnational relations of China’s local governments and contribute to the multiscalar analysis of the spatialization of industrial strategies in Global Production Networks.

СТРАТЕГІЧНЕ ПАРТНЕРСТВО УКРАЇНИ ТА ТУРЕЧЧИНИ У ВІЙСЬКОВО-ТОРГОВЕЛЬНІЙ СФЕРІ

The relevance of the research topic arises from the fact that international military-technical cooperation is an important prerequisite for the ability of modern Ukraine to defend itself against Russian military aggression and to protect the sovereignty and independence of Ukraine. The article presents a retrospective analysis, institutional aspects, and the current state of cooperation between Ukraine and Turkey in the military-technical sphere. This article aims to assess the priority directions of military-technical cooperation between Ukraine and the Republic of Turkey in the conditions of the active phase of the Russian-Ukrainian war and to identify the directions for developing this cooperation, taking into account the significant potential of the Ukrainian defense industry. This article is based on the statistical and analytical materials in the domestic and foreign specialized literature, data from international organizations, and analytical and expert centers. During the research, the methods of analysis and synthesis, comparison, grouping, and systematization, as well as elements of the institutional approach, were used. The research results show that Turkey's status, as one of the most important strategic partners of Ukraine in national security matters, is caused by its long-term support in the military-technical field, assistance in unblocking the maritime export routes for Ukrainian grain in the Black Sea, and the implementation of important humanitarian projects. The list of military goods for actual cooperation such as the production of engines, unmanned combat aircraft, digital communication systems, precision weapons, radar systems, and others has been identified. The potential of further intergovernmental cooperation, which will support the strengthening of the export capacities of both countries in the global arms market, was revealed. It was identified that Ukraine's strategic cooperation with Turkey, as one of the most active players in the modern geopolitical environment, can strengthen the ability of our countries to consolidate international forces in support of its aspirations to protect its independence. Prospects for further research may relate to the disclosure of areas of potential cooperation in the conditions of the post-war revival of the Ukrainian economy, Turkey's support for our country's accession to NATO, and the assessment of opportunities for the formation of production and supply chains through the format of international strategic alliances with the participation of Ukrainian and Turkish companies to promote the latest high-tech weapons models in international markets.

The Efficacy of Interest Subsidies as an Investment Incentive Instrument

Purpose: Since interest subsidies have always been a crucial part of investment policy in Türkiye, the study focused on the efficacy of interest subsidies as an investment incentive.
 Methodology: First, the interest and cash-flow sensitivity of the investment expenditure are explored before touching upon the literature on the interest and credit subsidy sensitivity of the investments without omitting the influential financing parameters. Then, financing parameters in sectoral balance sheets and the financing outlook of the Turkish companies are examined to infer which type of credit subsidy should be preferred, before bringing concrete observations from the recent capital formation trend.
 Findings: First, funding conditions, economic cycles and market frictions stemming from informational asymmetry influence the efficacy of the interest subsidies. Second, interest subsidies only become effective when economic and financial volatility surge, which implies a lesser effect than quasi-tax incentives. Third, monetary and interest subsidy authorities should coordinate. Finally, the credit guarantee mechanism is more powerful than interest subsidies to achieve policy goals since credit accession is a way bigger problem for Turkish companies.
 Originality: To my knowledge, this is the first article ever written specifically examining the efficacy of interest subsidies in Türkiye, although there were many studies focusing on investment incentives in general.

The Dilemma of Annual Reporting for Turkish Companies for 2022

Abstract Turkey has had another year of high inflation and high devaluation in its economic history. Inflation has been a continuing phenomenon in Turkey for many years. The paper analyzes the consequences of high inflation and devaluation rates on financial statements. Inflation and devaluation create difficulties both for local and foreign subsidiary companies` financial reporting. A model company`s transactions have been used to show the effects of inflation, devaluation on the financial statements. Application of different IAS based reporting methods will create discrepancies among the companies of foreign subsidiaries. Another discrepancy is due to which inflation rate to be applied for IAS 29 purposes. There are two inflation rates being discussed by the public. One is declared by the government statistical agency called “TurkStat” and the other one declared by the non-governmental academicians` organization called “ENAG”. ENAG`s inflation rate-being more than twice of the TurkStat`s makes the case even more interesting. Since government is not going to allow the inflation accounting rules for financial reporting for local/tax purposes for 2022 fiscal year, companies with revenues exceeding expenses and assets exceeding their liabilities will be declaring profits and paying taxes whilst in fact, high inflation and devaluation are sweeping away those profits.

The Impact of Sustainability Reporting on Financial Performance: Evidence from Turkish FBT and TCL Sectors

This study investigated the impact of sustainability reporting on financial performance, with a focus on companies in the Turkish food, beverage and tobacco and textile, wearing apparel and leather sectors. The sustainability reports of 48 companies listed on the Istanbul Stock Exchange for 2022 were studied, and the quality of sustainability practices was determined by using a general index (Sustainability Reporting Disclosure Quality Index (SRDQI)) and three partial indices (Environmental Disclosure Quality Index, Social Disclosure Quality Index, and Corporate Governance Disclosure Quality Index (CGDQI)). To analyze the relationships between financial performance and sustainability practices, two types of regression models were developed, based on which eight models were directly examined. The results indicate the complete absence of a statistically significant impact of SRDQI on all financial performance measures used. Among the partial indices, only CGDQI has a significant positive effect on the Assets Turnover Ratio. An analysis of the influence of control variables shows a multidirectional dependence of individual financial performance measures on the size of companies, their age, industry affiliation, as well as on the structure of capital used. Finally, this study provides directions for improving the institutional environment of sustainability reporting for Turkish companies.

Analysing gender equality and empowerment in Turkish companies: an exploratory case to achive United Nations s sustainability goal

Purpose- United Nations' Sustainability Goal 5, "Achieving Gender Equality and Empower All Women and Girls," is a critically important topic in today's sustainability agenda. This exploratory case study aims to delve into the current status of gender equality and women's empowerment in Turkish businesses. Furthermore, it seeks to propose a roadmap with thematic areas that can guide companies in fulfilling Goal 5. Methodology- For this qualitative research, the study engaged professionals in Türkiye, specifically in the manufacturing and logistics industries in Istanbul. The research employed both preliminary and face-to-face interviews to gather insights from experts in the field of sustainability and those working on SDG 5. The preliminary phase involved two managers, while the subsequent face-to-face interviews involved five key experts. A total of ten open-ended questions were posed to representatives from five companies, comprising sustainability managers and specialists from the manufacturing and logistics sectors. Findings- Sustainable Development Goal 5 (SDG 5) literature revealed various themes related to gender equality and empowerment, encompassing gender-neutral decision making, a person’s well-being, creating safe spaces, gender equality role in value chain, environmental impact, ethical considerations, awareness, and empowerment linked to leadership. The qualitative research findings were significant to shape a future plan. Based on the research results, ten thematic areas for companies was developed by the authors. Conclusion- The development of Sustainable Development Goal 5 (SDG 5) relies heavily on social, economic, and environmental factors, particularly concerning leadership. This case study underscores the need for Turkish companies to prioritize gender equality and women's empowerment initiatives, as their efforts will contribute to broader sustainability endeavors within the country. By actively embracing the proposed roadmap's strategies, businesses can pave the way for a more inclusive and sustainable future for all individuals in Türkiye. Keywords: Gender equality, leadership, sustainability, SDG5 target, workplaces JEL Codes: M14, Q01, J16

Modeling Accounting Profit Behavior Based on Events Theory a Comparative Study of Companies Listed on the Tehran and Istanbul Stock Exchange

Purpose: Th is study aims to evaluate the effect of annual financial events on operating, and net accounting profits in the financial statements of Iranian and Turkish companies.
 
 Theoretical framework: The profitability of the company is one of the main factors that determine shareholder and investor returns. This topic has been central to a number of contemporary financial studies discussed in the literature review.
 
 Design/methodology/approach: To conduct the research, data related to the financial statements of 121 companies listed on the Tehran Stock Exchange for a period of 10 years from 2010 to 2019 and 151 companies listed on the Istanbul Stock Exchange for a period of 10 years from 2010 to 2019 were used.
 
 Findings: According to the results, there was a significant relationship between financial events and operating, and net accounting profits of Iranian and Turkish companies. Moreover, current and previous financial statements affected accounting profit, and no significant difference was observed between the two geographical locations of Iran and Turkey.
 
 Research, Practical & Social Implications: Information about companies' financial statements could be utilized by investors and analysts to more suitably analyze companies' current and future profits and returns.
 
 Originality/value: Most previous studies have assessed factors inside or outside the organization affecting profit, and the capacity of complete information on the change of the financial situation in different periods and its effect on profit behavior has not been thoroughly analyzed. This matter highlights the significance of our study.

Stock Return Response to Changes in MSCI Standard and Small Cap Index Composition for Turkey

The effect of index reconstitution on stock return and volume have been one of the controversial subjects in finance. Although, there are several researches, which are analyzing the domestic stock market index effect on stocks, a few studies focused on the effects of an international index. By the use of event study methodology, this paper analyzes the price effect of changes in constituents of two MSCI indexes (Standard Index and Small Cap Index) for Turkish companies as of announcement and effective dates. Overall, there are four analyses; namely, addition to Small Cap Index with respect to announcement (effective) day, deletion from Small Cap Index with respect to announcement (effective) day, addition to Standard Index with respect to announcement day (effective), and deletion from Standard Index with respect to announcement day (effective). The findings of the study present that index effect may appear or disappear, depending on the index, on which index reconstitution is being analyzed. Moreover, existence of the index effect is also subject to event day definition, which may be either announcement date or effective date of the index event.

Blockchain Characteristics and Implications: Assessing the Impact on Sustainability in Turkish Sectors

Technological advances are accelerating the activation of the saving, preserving and using information in various economic models. Blockchain technology is one of the latest technologies used by many international institutions and organizations. Compared to other banking or technological technologies, it transmits and accumulates information transparently, instantly, and reliably at a low cost. As Turkey plays a significant economic role in the Middle East and Europe regions, this article highlights a sample of Turkish companies that use blockchain technology of the version 4.0. It is an attempt to measure the variables of the coefficient of trust, immutability, transparency, and cost reduction in combination with blockchain applications by scientists, administrative authors, and blockchain technologists. A quantitative descriptive approach has been adopted to examine the interrelation between blockchain applications and increase in transparency, confidence, stability, and cost reduction, based on the SPSS statistical software to produce accurate results. 19 Turkish companies were selected from 62 Turkish companies that have adopted blockchain, according to the official agency «BTCR» that tracks these organizations in Turkey. The selected companies, operating in banking, telecommunications, industry, and non-governmental associations, make large contributions to Turkey’s GDP. The study found that all four variables in the sectors improved significantly after the introduction of blockchain technology, but the systems for monitoring and tracking their influence were complex ones.

Who said there is no place like home? Extending the link between quantitative job demands and life satisfaction: a moderated mediation model

PurposeBased on the job demands and resources (JD-R) model and conservation of resources (COR) theory, this paper aims to develop and test a model that examines the moderating role of daily remote work hours and the mediating role of work–family conflict on the effects of excessive workload and time pressure on life satisfaction due to mandatory remote work arrangements.Design/methodology/approachHierarchical regression analysis was used to analyze data from 400 professionals working in the IT sector in Turkey. Scales developed by previous researchers were used to measure excessive workload, time pressure, work–family conflict and life satisfaction. While these four variables were measured with 19 statements, daily remote work hours were determined with a single question. The collected data were validated using confirmatory factor analysis, and the hypotheses were tested using structural equation modeling. Furthermore, the reliability and validity of the data were confirmed. Finally, PROCESS was applied to examine moderated mediation.FindingsAccording to the analysis results obtained from the above sample data, daily remote work hours moderate the mediating role of work–family conflict in the relationships between (1) excessive workload and life satisfaction and (2) time pressure and life satisfaction. In other words, the findings show that job-related demands arising from workload, time pressure and remote work hours prevent employees from meeting their family obligations, thereby increasing work–family conflict and ultimately affecting life satisfaction.Practical implicationsThe study can help employers, managers, human resource professionals, policymakers and researchers increase employees' life satisfaction due to the changes in job demands experienced by employees in companies that have transitioned to remote work practices. It can provide new approaches for dealing with dissatisfaction arising from work-related conflicts in Turkey's changing environment. The results can greatly facilitate the Turkish companies' efforts to create more innovative work arrangements and make an outstanding contribution to improving employee performance in Turkey's transition to remote work practices by focusing on reducing workload, time pressure and long working hours and creating employee-centered remote work models.Originality/valueAs per World Health Organization, the world will face frequent pandemic in the coming years, and thus organizations should be aware of remote work practices that will become widespread. This study provides a new perspective on the impact of employees' changing job demands on work–family conflict and life satisfaction during organizations' transition to new work arrangements in the face of the social crisis created by the COVID-19 pandemic. The study also contributes to closing the research gap between job demands, work–family conflict and life satisfaction.

Brief Synopses of New Arabic-Language Publications

Brief Synopses of New Arabic-Language Publications

Ethics Codes Use in Turkish Supply Chains: Drivers, Company Performance and Sustainability

New understandings and methods in supply chains bring new research issues to the literature. Research identifies that pros and cons of ethics in supply chains and in their sustainability is one of the most argued and researched topics. Despite the large amount of work around the world, ethics literature requires some fundamental evidence from Turkish supply chain components. This research aims to explore the drivers and outcomes of ethics codes use of Turkish companies regarding their supply chain sustainability by providing a holistic view. We collect data through a structured interview in order to see Turkish companies’ critics on the generally accepted points as a result of the literature review. The target companies are a part of supply chains located in Turkey from different industries. According to the findings, (1) internally corporate culture and externally customers are most agreed drivers to employ ethics codes; (2) enhancing customer and supplier relationships; and achieving better prices, quality and efficiency are the agreed benefits of ethics codes use; and (3) Turkish firms reach economic sustainability and social sustainability, but, low level of environmental sustainability after the use of ethics codes in their supply chains. The work is important in that it is one of the few studies in Turkey settings.

Expansion of the west in the Caspian region

The expansionism of the West, led by the United States in the CIS space, particularly in countries with signifi cant natural resources, is always aimed not only at maximization the use of their wealth but also at neutralization the infl uence of Russia. The energy reserves of the Caspian territories and their geography since olden times attracted Westerners, primarily Americans and British. The oil boom in the second half of the 19th century led to the introduction of the largest Western companies such as the American giant «Standard Oil», «French House of Rothschild», and the Anglo-Dutch «Royal Dutch Shell» equipped with advanced technologies into the country's hydrocarbon industry. Extraordinary for that time fi nancial resources were invested in the Russian oil industry. The Soviet government nationalized the oil and gas industry, blocking foreigners' access to it. After the collapse of the USSR, new sovereign states, including the Caspian ones, in an eff ort to overcome socioeconomic and foreign policy problems, focused on the accelerated exploitation of natural resources by the foreign partners. American, British, Norwegian, Japanese, Saudi, Turkish companies have started operating in Azerbaijan. Royal Dutch-Shell, Chevron, Eni, Total feel comfortable in Kazakhstan. Along with hydrocarbons, Kazakhstan has signifi cant reserves of uranium, which is mined by foreign businesses, including Western ones. From 1992 (date of establishment of Turkmen-American diplomatic relations) up to 2021 Turkmenistan and the United States signed 167 documents on cooperation in the energy sector, including the gas sector, engineering, agriculture and other areas. Against this background, Russia needs to intensify its participation and cooperation in energy projects, scientific, educational, agro-industrial areas of the Caspian states. Activities in the CIS space is important especially in the context of the total, political, economic, information war of the collective West against Russia.

Gendered Discourses Produced Within the Corporate Sustainability Context: An Analysis on Turkiye

The current global political context of women’s empowerment is focusing on a sustainable economy and society. Corporate sustainability practices on women’s empowerment outgrow the concept of the struggle for gender equality at the workplace. Although women’s empowerment is positioned as one of the solutions for sustainability, there is a debate on the results of the corporate-led empowerment agenda, where remains a discursive terrain of such initiatives. The purpose of this research is to analyze the discourses produced by corporate companies in Turkey within the context of women’s empowerment for sustainable development and to present an empirical inquiry to bring up whether gendered discourses are produced. This research draws from all the approved corporate sustainability reports of Turkish companies and the findings of this research emerge from the literature review, field research, and theoretical and empirical work all together. Forty two companies out of the analysed 53 have statements on women’s empowerment and research findings show that these statements include gendered discourses. Gendered discourses are grouped into 5 groups (according to the idea of gendering) as: discourses produced with gendered biases, discourses reflecting power domination, discourses that include gratuitous premodifiers, discourses othering women, and discourses including gender generic nouns. All groups of discourses are discussed through related theories of gender and power. The research findings provoke new directions for future research problematizing ‘doing gender’ through language with the new questions it calls over the power politics of gender equality and empowerment of women. 

The use of digital marketing in information transport in social media: the example of Turkish companies

The aim of this research is to examine the relationship between brands and consumers in the Turkish digital marketing business and to reveal results. aims. In this research, the definition of digital marketing, the definition of the development process, the development of digital marketing and the situation in Turkey are analyzed. The research mainly includes positive or negative examples of brand and consumer communication through social media channels and other digital channels. In addition, examples of these communication types and the evolution of ever-changing marketing concepts are given in the digital environment. Marketing efficiency, information transfer and consumer behavior of the digital platform were evaluated. The communication between consumers and brands through digital channels and the effect of this communication on consumer behavior in the purchasing process are examined. Then, the campaigns of various companies on social media and the results of these activities are explained. In this study, the concept of digital marketing, which is one of the leading forms of marketing today, is emphasized. For this, firstly, the concept of digital marketing is explained. Then, the campaigns that explain the advantages of digital marketing to the sales of different brands and the effects of these campaigns are explained.

PSYCHOLOGICAL EMPOWERMENT AND ORGANIZATIONAL COMMITMENT: EVİDENCE FROM THE TOURİSM INDUSTRY

Purpose: This study intends to explore the link between psychological empowerment (PE) and organizational commitment (OC) with the data obtained from tourism sector employees in Turkey. Accordingly, the goals of the study are: i) To measure the level of OC (affective, normative and continuance commitment) among employees in the tourism sector in Turkey ii) To measure the level of PE (meaning, competence, self-determination and impact) iii) To examine the relationship between PE and OC. To test the proposed relationship, three hypotheses are developed; H1: PE will have a positive impact on affective commitment. H2: PE will have a positive impact on normative commitment. H3: PE will have a positive impact on continuance commitment. Research Methods: Each variable was measured using a 5-point Likert scale ranging from “strongly disagree” (1) to “strongly agree” (5). PE was measured by 12 items developed from the study of Spreitzer (1995). OC was measured by 9 items developed from the study of Meyer & Allen (1997). The data of the study were obtained both through the questionnaire technique via Google form and face to face interviews. Of the 118 respondents 80(68%) were men, and 38 (32%) were women. The majority of the participants (45%) are ranged in age from 17 to 25 years. Of the participants, %31 have üniversity educations and %46 have been working between 3 and 5 years in the company. The majority of the participants have an income ranging from 4001-6000 ? (Turkish Liras) where the net minimum wage is wage for single people is 2,826 ? ($377) a month. Data from 118 employees have been evaulated by using of the SPSS 20.0 program Results and Discussion: The findings of the study reveal that the level of AC (mean = 3,81), NC (mean = 3,53), and CC (mean = 3,82) is moderate among tourism sector employees. Continuance commitment appears to be the highest of the three components of the OC which is not surprising as the respondents of the survey are from Turkey which has high unemployment rate (13,4 percent in February of 2021). In high unemployment work environments employees are likely to exhibit higher levels of CC because of the higher penalty of job loss. In such environments feelings of job insecurity among employees creates an incentive to embrace their current employment and thus they remain loyal and committed to their organization(Shapiro-Stiglitz, 1984). In terms of the correlations between the variables, the results reveal that all of the variables show significant positive correlations. On the other hand the findings indicate employees in tourism sector felt that they are not empowered enough by their organization (mean = 2,65). that the level. This result suggests that although employee empowerment is proved to be a useful tool, managers are resistant to share their power. Overall, consistent with other studies (Joo et al., 2010; Choong et al., 2011; Rawat, 2011; İbrahim, 2020), findings of the study indicate that PE has positive and significant impacts on AC (ß = .31, p< .01), NC (ß = .26, p< .05), CC (ß = .21, p< .05). Therefore it is evident that there is a need to improve the current situation at tourism companies with respect to all the components of the PE which in turn would enhance OC levels of employees. Implications: This research suggests that employees’ empowerment experiences directly affect their commitment level and thus in order generate high degree of OC, the tourism companies should develop training programs to foster managers in understanding appropriate practices and behavior sets that will enhance employee empowerment. However, it is useful to evaluate the results of the research in consideration of some constraints. First of all, the present study is carried out in Turkish companies in the tourism sector and the sample size is quite small. Therefore, one may debate that generalization of the results is questionable. Future research should observe a broader set of in order to identify if any the differences exist in relation to the characteristics of its industry. Researchers should also look to impact of leadership styles, ethical climate, corporate reputation on OC.