Abstract:

The defining characteristic of family businesses is their family-oriented governance structure, which generally emphasizes the preservation of harmony and unity among family members. The potential shaped by familial dynamics within this structure can create negative outcomes at both individual and organizational levels. Within the scope of the current research, the role of psychological empowerment in the effect of nepotism on organizational commitment in family businesses is discussed. 328 participants were included in the study and hypotheses were tested using Structural Equation Modeling with Smart PLS 4. The results showed that the perception of nepotism decreases employees’ affective commitment, continuance commitment and normative commitment. However, psychological empowerment positively affects continuance and normative commitment. According to the mediating role analysis results, psychological empowerment mediated the relationship between nepotism perception and normative commitment. On the other hand, psychological empowerment did not play a moderating role in the relationship between nepotism perception and organizational commitment. Based on the research findings, organizational success and sustainability can be achieved by proactively addressing concerns about nepotism in organizations, developing strategies for psychological empowerment, and implementing supportive policies to encourage a loyal workforce.

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