The relationship between corporate governance, nepotism and business performance in family businesses

The purpose of this study is to determine the relationship between nepotism, corporate governance and business performance in family businesses, also the mediating effect of nepotism in the relationship between corporate governance and business performance. The target population of the study consists of family businesses in Denizli province and the sample consists of family businesses that allow data collection. The questionnaire was applied to white-collar employees in family businesses. The data of the study was obtained by distributing and collecting the questionnaires to the employees through the human resources department of the enterprises and applying them via the internet. As a result of the analysis of 441 data, it was determined that the scale of corporate governance, nepotism and business performance used in the research was valid and reliable. According to the results of the study; perception of nepotism (¯X=2.545), perception of corporate governance (¯X=3.24) and perception of business performance perception (¯X=3.71) in organizations were determined. It has been determined that there is a negative relationship between corporate governance and nepotism variable, a positive relationship between corporate governance and business performance and a negative significant relationship between nepotism and business performance. The variable of nepotism was found to have a significant mediating effect on corporate governance and business performance variables. Keywords: Family Businesses, Nepotism, Corporate Governance, Business Performance.