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Purpose

Although common throughout the world, little is known about the mechanism by which nepotism is associated with employee outcomes. Drawing from social exchange theory, this study examines whether fear-based silence mediates the relationship between nepotism with employee workplace withdrawal and career satisfaction. In addition, whether gender moderates the relationship between nepotism and fear-based silence is also examined.

Design/methodology/approach

Two time-lagged surveys of 330 employees in the Indian banking sector were completed.

Findings

As hypothesized, nepotism was positively related to fear-based silence and employee workplace withdrawal; it was negatively related to career satisfaction. Fear-based silence partially mediated the relationships of nepotism with workplace withdraw and career satisfaction. Gender moderated the relationship between nepotism and fear-based silence.

Practical implications

This study shows the negative impact of nepotism on employee outcomes and suggests means for reducing its prevalence in organizations.

Originality/value

This is the first study to examine fear-based silence as a mediator of nepotism’s relationship with employee workplace withdrawal and career satisfaction. It also answers repeated calls for more research on fear-based silence and its antecedents.

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