Browse > Article
http://dx.doi.org/10.15722/jds.19.7.202107.41

The Relationship Among Nepotism, Leader Legitimacy, and Work Engagement: Focus on Distribution Industry  

KIM, Mikyoung (Land & Housing Institute)
MOON, Jaeseung (School of Business Administration, Daejeon University)
Publication Information
Journal of Distribution Science / v.19, no.7, 2021 , pp. 41-50 More about this Journal
Abstract
Purpose: This study aims to analyze the effect of nepotism on work engagement. In addition, this study aims to analyze the mediating effect of leader legitimacy in the relationship between nepotism and work engagement in the distribution industry. Research design, data and methodology: 236 survey data were collected and analyzed using SPSS 22 and AMOS 22. For the assessment of the goodness of fit of the models, indexes such as TLI, CFI, RMSEA were used. For hypotheses testing, we used SEM method and bootstrapping. Results: The results of this study are as follows. First, the relationship between nepotism and the employee's work engagement was not significant. Second, it was revealed that nepotism negatively affects the leader's legitimacy. Third, it was found that a leader's legitimacy had a positive effect on the employees' work engagement. Fourth, leader legitimacy was found to mediate the relationship between nepotism and employees' work engagement. Conclusion: We found that the effect of nepotism can be changed depending on contingent factors. This study contributed to the accumulation of nepotism theory by demonstrating the process in which nepotism, which has been insufficient so far, affects outcome variables. Based on the empirical results of this study, theoretical and practical implications, limitations, and future research directions were discussed.
Keywords
Nepotism; Leader Legitimacy; Work Engagement; Mediating Effect; Distribution Industry;
Citations & Related Records
Times Cited By KSCI : 1  (Citation Analysis)
연도 인용수 순위
1 Tran, T. T., Tran, A. T., & Pham, T. N. (2020). Mediation role of satisfaction and trust on attitudinal commitment and relationship quality. The Journal of Asian Finance, Economics, and Business, 7(10), 275-281.   DOI
2 Yang, H. C., & Cho, H. Y. (2015). Effects of individuals, leader relationships, and groups on innovative work behaviors. The Journal of Industrial Distribution & Business, 6(3), 19-25.   DOI
3 Yang, X., & Moon, J. (2019). The effects of LMX and feeling trusted on job performance and workplace ostracism among salespeople. The Journal of Distribution Science, 17(4), 41-50.   DOI
4 Amir, M. T., & Mangundjaya, W. L. (2021). How resilience affects employee engagement? A case study in Indonesia. The Journal of Asian Finance, Economics, and Business, 8(2), 1147-1156.   DOI
5 Anand, S., Vidyarthi, P. R., Liden, R. C., & Rousseau, D. M. (2010). Good citizens in poor-quality relationships: Idiosyncratic deals as a substitute for relationship quality. Academy of Management Journal, 53(5), 970-988.   DOI
6 Arasli, H., Bavik, A., & Ekiz, E. H. (2006). The effects of nepotism on human resource management. International Journal of Sociology and Social Policy. 26(7/8), 295-308.   DOI
7 Coffman, D. L., & MacCallum, R. C. (2005). Using parcels to convert path analysis models into latent variable models. Multivariate Behavioral Research, 40(2), 235-259.   DOI
8 Henderson, D. J., Liden, R. C., Glibkowski, B. C., & Chaudhry, A. (2009). LMX differentiation: A multilevel review and examination of its antecedents and outcomes. The Leadership Quarterly, 20(4), 517-534.   DOI
9 Dailey, R. C., & Reuschling, L. T. (1980). Managing continuity in the family-owned company. Journal of General Management, 5(3), 49-56.   DOI
10 Arasli, H., & Tumer, M. (2008). Nepotism, Favoritism and Cronyism: A study of their effects on job stress and job satisfaction in the banking industry of north Cyprus. Social Behavior and Personality: An International Journal, 36(9), 1237-1250.   DOI
11 Choi, Y., & Mai-Dalton, R. R. (1998). On the leadership function of self-sacrifice. The Leadership Quarterly, 9(4), 475-501.   DOI
12 Ichniowski, T. (1988). The new nepotism: why dynasties are making a comeback. Business Week, 31(4), 106-109.
13 Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39-50.   DOI
14 Fabiyani, N. N., Sudiro, A., Moko, W., & Soelton, M. (2021). Conceptualizing the role of work engagement: A case study of the hotel Sector in Surabaya during the COVID-19. The Journal of Asian Finance, Economics and Business, 8(5), 485-494.   DOI
15 Fishbein, M., & Ajzen, I. (1977). Belief, attitude, intention, and behavior: An introduction to theory and research. Reading, MA: Addison-Wesley.
16 Ford, R., & McLaughlin, F. (1986). Nepotism: Boon or bane. Personnel Administrator, 31(11), 78-89.
17 Ha, S., Youn, S., & Moon, J. (2020). Emotional leadership, leader legitimacy, and work engagement in retail distribution industry. Journal of Distribution Science, 18(7), 27-36.   DOI
18 Hau, K. T., & Marsh, H. W. (2004). The use of item parcels in structural equation modelling: Non-normal data and small sample sizes. British Journal of Mathematical and Statistical Psychology, 57(2), 327-351.   DOI
19 Hrebiniak, L. G., & Alutto, J. A. (1972). Personal and role-related factors in the development of organizational commitment. Administrative Science Quarterly, 17(4), 555-573.   DOI
20 Scott, W. R., & Dornbusch, S. M. (1975). Evaluation and the Exercise of Authority. San Francisco: Jossey-Bass Publishers.
21 Cattell, R. B., & Burdsal Jr, C. A. (1975). The radial parcel double factoring design: A solution to the item-vs-parcel controversy. Multivariate Behavioral Research, 10(2), 165-179.   DOI
22 Bandalos, D. L. (2002). The effects of item parceling on goodness-of-fit and parameter estimate bias in structural equation modeling. Structural Equation Modeling, 9(1), 78-102.   DOI
23 Bandalos, D. L., & Finney, S. J. (2001). Item parceling issues in structural equation modeling. In New developments and techniques in structural equation modeling (pp. 289-316). Psychology Press.
24 Blau, P. M. (1964). Exchange and power in social life. New York: John Wiley and Sons.
25 Chong, K. H., Hwang, I. Y., & Lee, N. G. (2016). The effects of franchise hotel leader's emotional leadership on satisfactional effectiveness: Focused on the antecedents of emotional leadership and the mediating effects of trust. The Journal of Distribution Science, 14(4), 39-46.   DOI
26 Akob, M., Arianty, R., & Putra, A. H. P. K. (2020). The mediating role of distribution Kahn's engagement: An empirical evidence of salesforce in Indonesia. The Journal of Asian Finance, Economics, and Business, 7(2), 249-260.
27 Driscoll, J. W. (1978). Trust and participation in organizational decision making as predictors of satisfaction. Academy of Management Journal, 21(1), 44-56.   DOI
28 Abdalla, H. F., Maghrabi, A. S., & Raggad, B. G. (1998). Assessing the perceptions of human resource managers toward nepotism. A cross-cultural study. International Journal of Manpower, 19(8), 554-570.   DOI
29 Zhang, J., & Liu, J. (2018). Is abusive supervision an absolute devil? Literature review and research agenda. Asia Pacific Journal of Management, 35(3), 719-744.   DOI
30 Weiss, H. M., & Cropanzano, R. (1996). Affective Events Theory: A theoretical discussion of the structure, causes and consequences of affective experiences at work. In B. M. Staw & L. L. Cummings (Eds.), Research in organizational behavior: An annual series of analytical essays and critical reviews, Vol. 18(p. 1-74). Elsevier Science/JAI Press.
31 Anderson, J. C., & Gerbing, D. W. (1988). Structural equation modeling in practice: A review and recommended two-step approach. Psychological Bulletin, 103(3), 411-423.   DOI
32 Kahn, W. A. (1990). Psychological conditions of personal engagement and disengagement at work. Academy of Management Journal, 33(4), 692-724.   DOI
33 Bentler, P. M., & Chou, C. P. (1987). Practical issues in structural modeling. Sociological Methods & Research, 16(1), 78-117.   DOI
34 Erdogan, B., & Bauer, T. N. (2010). Differentiated leader-member exchanges: The buffering role of justice climate. Journal of Applied Psychology, 95(6), 1104-1120.   DOI
35 Hughey, J., & Burdsal, C. (1982). 16PF-E structure using radial parcels versus items. The Journal of General Psychology, 107(1), 107-119.   DOI
36 Kiechel, W. (1984). How to relate to nepotism. Fortune, 119, 143-144.
37 Kim, S., Youn, S., & Moon, J. (2021). The impact of basic psychological needs satisfaction on the performance of the franchisee. Journal of Distribution Science, 19(1), 17-26.   DOI
38 Parry, K. W., & Proctor-Thomson, S. B. (2002). Perceived integrity of transformational leaders in organisational settings. Journal of Business Ethics, 35(2), 75-96.   DOI
39 Aryee, S., Budhwar, P. S., & Chen, Z. X. (2002). Trust as a mediator of the relationship between organizational justice and work outcomes: Test of a social exchange model. Journal of Organizational Behavior: The International Journal of Industrial, Occupational and Organizational Psychology and Behavior, 23(3), 267-285.   DOI
40 Dulebohn, J. H., Bommer, W. H., Liden, R. C., Brouer, R. L., & Ferris, G. R. (2012). A meta-analysis of antecedents and consequences of leader-member exchange: Integrating the past with an eye toward the future. Journal of Management, 38(6), 1715-1759.   DOI
41 Kishton, J. M., & Widaman, K. F. (1994). Unidimensional versus domain representative parceling of questionnaire items: An empirical example. Educational and Psychological Measurement, 54(3), 757-765.   DOI
42 Lee, Y. (2019). A study on the effect of authentic leadership of hospital organization on organizational commitment and organizational citizenship behavior: focusing on mediating effect of LMX. The Journal of Industrial Distribution & Business, 10(3), 73-83.   DOI
43 Lentz, B. F., & Laband, D. N. (1989). Why so many children of doctors become doctors: Nepotism vs. human capital transfers. Journal of Human Resources, 24(3), 396-413.   DOI
44 Marsh, H. W. (1994). Confirmatory factor analysis models of factorial invariance: A multifaceted approach. Structural Equation Modeling: A Multidisciplinary Journal, 1(1), 5-34.   DOI
45 McAllister, D. J. (1995). Affect-and cognition-based trust as foundations for interpersonal cooperation in organizations. Academy of Management Journal, 38(1), 24-59.   DOI
46 Saleh, C., Hayat, H., Sumartono, S., & Pratiwi, R. N. (2020). Moderating of religiosity on reward and engagement: Empirical study in Indonesia public service. The Journal of Asian Finance, Economics, and Business, 7(6), 287-296.   DOI
47 McCall, M. W., Lombardo, M. M., & Morrison, A. M. (1988). Lessons of experience: How successful executives develop on the job. Simon and Schuster.
48 Nguyen, L. G. T., & Pham, H. T. (2020). Factors affecting employee engagement at not-for-profit organizations: A case in Vietnam. The Journal of Asian Finance, Economics, and Business, 7(8), 495-507.   DOI
49 Oh, Y. S., Choi, B. N., & Kim, A. S. (2016). Effects of LMX and perceived ethics with leader on job burnout. The Journal of Distribution Science, 14(8), 59-66.   DOI
50 Pfeffer, J. (1981). Management as symbolic action: The creation and maintenance of organizational paradigms. In L. L. Cummings & B. M. Staw (Eds.), Research in Organizational Behavior (pp. 1-52). Greenwich, CT: JAI Press.
51 Schaufeli, W. B., Bakker, A. B., & Salanova, M. (2006). The measurement of work engagement with a short questionnaire: A cross-national study. Educational and Psychological Measurement, 66(4), 701-716.   DOI
52 Seclmis, C., & Uysal, D. (2016). The moderating role of nepotism in the effect of employee empowerment on perceptions regarding organizational justice at hospitality organisations. International Journal of Business and Management Invention, 5(9), 65-76.