Does Nepotism Affect Employee Job Performance? A Case Study of Frontline Staff in the Aviation Industry

Abstract

Despite a growing body of research on nepotism, the specific relationship between nepotism and employees’ in-role and extra-role performance—along with its underlying mechanisms—remains relatively underexplored. Drawing on Conservation of Resources (COR) Theory,  this study identified a key cognitive mediator linking perceived nepotism to both forms of job performance. Empirical data were collected from frontline aviation staff, and the proposed model was tested using Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings reveal that nepotism significantly increases perceptions of employment job uncertainty, which in turn negatively impacts both in-role and extra-role performance. These results contribute to the nepotism literature by identifying a cognitive mechanism through which nepotistic practices undermine employee behavior. The study also offers practical implications for organizations seeking to improve service quality by addressing perceived favoritism and its psychological and behavioral consequences