Nepotism: Is It Really as Bad as Imagined? Exploring Its Possible Impacts on Socioemotional Wealth in Hungarian Family Businesses

This research paper investigates the conceptual leadership phenomena of nepotism in a family business context. By identifying the antecendents of nepotism, namely machiavellianism and paternalism, the authors attempt to establish a solid context for examining its impact in family business succession. With applying the morally different concepts of reciprocal- and entitled nepotism an empirical attempt is demonstrated to capture the impact of nepotism on socioemotional wealth (SEW) in family businesses (FBs). Using a qualitative, interpretivist approach, two Hungarian FBs where the CEO title has been inherited are analysed through semi-structured interviews with three stakeholders: the predecessor, the successor, and a non-family employee. The findings suggest that reciprocal nepotism can strengthen SEW by fostering emotional bonds, organizational identity, and succession continuity. These insights contribute to the discourse on ethical succession planning and sustainable entrepreneurship in FBs. This research paper aims to provide deeper empirical insights, integrating stakeholder quotations, and positioning the findings within contemporary debates on family business succession and governance.