“…Some researchers show that, in family businesses, nepotism has a positive effect on performance, especially when generalized social exchanges are critical to firm performance (Firfiray, Cruz, Neacsu, & Gomez-Mejia, 2018;Jaskiewicz, Uhlenbruck, Balkin, & Reay, 2013). Nevertheless, the literature describes more negative than positive effects of nepotism on several aspects of people management, including adverse selection, with less-qualified workers receiving preference, lower job satisfaction, intention to quit, negative word of mouth, job stress, dysfunctional conservatism, and strategic involution (Arasli, Bavik, & Erdogan, 2006;Arasli & Tumer, 2008;Ford & McLaughlin, 1986;Le Breton-Miller & Miller, 2015;Neacsu, Gómez-Mejía, & Martin, 2017;Sidany & Thornberry, 2013). Nepotism can lead to perceptions of favoritism and inequity as well as job stress (Arasli & Tumer, 2008;Laker & Williams, 2003).…”