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Effects of kin density within family-owned businesses

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  • Spranger, Jennifer L.
  • Colarelli, Stephen M.
  • Dimotakis, Nikolaos
  • Jacob, Annalyn C.
  • Arvey, Richard D.
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    Abstract

    We examined how kin density within family-owned firms related to perceptions of nepotism and organizational justice; we also examined the moderating role of family membership in these relationships. In a sample of 79 family employees and 299 non-family employees in 21 family-owned businesses, both kin density and family membership were found to be related to nepotism perceptions. Additionally, family membership moderated the relationships of kin density to nepotism and justice perceptions, as well as the relationship between nepotism and justice perceptions. Finally, nepotism perceptions provided a partial mediating link between kin density and organizational justice perceptions. These results suggest that kin density and family membership are important variables to consider in understanding the experiences and attitudes of employees in family-owned businesses.

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    File URL: http://www.sciencedirect.com/science/article/pii/S0749597812000908
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    Bibliographic Info

    Article provided by Elsevier in its journal Organizational Behavior and Human Decision Processes.

    Volume (Year): 119 (2012)
    Issue (Month): 2 ()
    Pages: 151-162

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    Handle: RePEc:eee:jobhdp:v:119:y:2012:i:2:p:151-162

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    Web page: http://www.elsevier.com/locate/obhdp

    Related research

    Keywords: Kin density; Organizational justice; Family business; Nepotism;

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    1. Miller, Danny & Le Breton-Miller, Isabelle & Lester, Richard H. & Cannella Jr., Albert A., 2007. "Are family firms really superior performers?," Journal of Corporate Finance, Elsevier, vol. 13(5), pages 829-858, December.
    2. Anne Case & I-Fen Lin & Sara McLanahan, 1999. "How Hungry is the Selfish Gene?," NBER Working Papers 7401, National Bureau of Economic Research, Inc.
    3. Anne Case & Christina Paxson, 2000. "Mothers and Others: Who Invests in Children’s Health?," Working Papers 277, Princeton University, Woodrow Wilson School of Public and International Affairs, Center for Health and Wellbeing..
    4. I-Fen Lin & Anne Case & Sara McLanahan, 1999. "Household Resource Allocation in Stepfamilies: Darwin Reflects on the Plight of Cinderella," American Economic Review, American Economic Association, vol. 89(2), pages 234-238, May.
    5. Danny Miller & Isabelle Le Breton-Miller & Barry Scholnick, 2008. "Stewardship vs. Stagnation: An Empirical Comparison of Small Family and Non-Family Businesses," Journal of Management Studies, Wiley Blackwell, vol. 45(1), pages 51-78, 01.
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