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.
