Negative reflections of nepotism on employees and obstacles in the process of institutionalization of family businesses

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Abstract

One of the most prominent problems faced by family businesses is the presence of nepotism. This study was conducted to find out if nepotism is present in local family businesses operating in Kosovo. It also aims to identify the negative reflections of nepotism on employees and the effects of nepotism on obstructing the institutionalization of family businesses. In this study, direct interviews were conducted with the managers of 10 family businesses who have no family ties with the founders of the business. The study was conducted with qualitative methods with the model of the case study, where the program MAXQDA 2020 was used for data analysis, which created codes and categories from the results of interviews. From the results of this study, it is understood that nepotism as a phenomenon is widespread in these enterprises. On the other hand, some of the negative reflections of nepotism on the managers and other employees of these family businesses have been identified as a result of the existence of nepotism. It is also understood that the existence of nepotism is an obstacle to the institutionalization of family businesses.

Keywords: Family Businesses, Nepotism, Institutionalization

Authors’ individual contribution: Conceptualization — J.S., V.S., and D.L.; Methodology — J.S. and V.S.; Resources — J.S., V.S., and D.L.; Writing — Original Draft — J.S., V.S., and D.L.; Writing — Review & Editing — J.S. and V.S.; Visualization — J.S. and D.L.; Funding Acquisition — J.S. and V.S.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: M10, M12, M51

Received: 05.02.2022
Accepted: 03.06.2022
Published online: 07.06.2022

How to cite this paper: Spahi, J., Shala, V., & Lima, D. (2022). Negative reflections of nepotism on employees and obstacles in the process of institutionalization of family businesses [Special issue]. Corporate Governance and Organizational Behavior Review, 6(2), 268–278. https://doi.org/10.22495/cgobrv6i2sip11