Nepotistic ambivalence : can nepotism have a positive impact on organisations?

Abstract

Orientation: Nepotism is traditionally perceived as a harmful organisational practice, yet it remains widespread, especially in family-owned businesses, raising the question of whether it can generate positive outcomes under certain conditions. Research purpose: This study explored employees’ experiences, behaviours, and attitudes toward nepotism, examining how these are shaped by the perceived opportunity to benefit from nepotism. Motivation for the study: Contradictions in the existing literature suggest nepotism can yield both positive and negative outcomes, but limited empirical research has investigated employees’ lived experiences of nepotism in the South African context. This study aimed to address this gap and provide insight into the conditions under which nepotism may be perceived as beneficial or detrimental. Research design, approach, and method: A qualitative methodology employing hermeneutic phenomenology was used to capture lived experiences and meanings. Semi-structured interviews were conducted with eight participants from the metals manufacturing sector in Gauteng, South Africa, with data analysed using thematic analysis. Main findings: Five key themes emerged: (1) perceived favouritism and fairness concerns; (2) effects on team dynamics and morale; (3) competence and performance outcomes; (4) family loyalty and trust; and (5) contextual ambivalence and conditional acceptance. Findings highlight that nepotism is not universally understood as negative; its acceptance depends on factors such as context, perceived fairness, transparency, and competence of family appointees. Practical or managerial implications: The findings suggest that nepotism, when managed consistently and transparently, can foster loyalty, trust, and continuity. However, poorly managed nepotism erodes fairness perceptions, diminishes morale, and disrupts team cohesion. Leaders and HR practitioners ought to implement clear, fair, and auditable recruitment policies that can assist in mitigating risk, while leveraging potential benefits. Contributions: The study contributes to organisational psychology by introducing the concept of nepotistic ambivalence—employees’ simultaneous recognition of both the benefits and harms of nepotism. It advances theory by linking these perceptions to equity theory and social exchange theory, and provides practical guidance for managing nepotism in ways that minimise unfairness and enhance organisational outcomes.