SUMMARY
This study aims to examine the effect of nepotism on employee engagement and turnover intention in Lebanese family businesses. Using a convenient sampling method, 378 participants from different administrative levels, departments and sectors within Lebanese family businesses were selected to complete the study questionnaire. Structural equation modelling (SEM) was used to analyse the data. The study's findings revealed that nepotism has a significant negative influence on employee engagement, meaning that when nepotism is present within Lebanese family businesses, employees are less likely to be engaged in their work. Additionally, the results indicated a significant positive relationship between nepotism and turnover intention. In other words, when nepotism exists, employees are more inclined to have the intention to leave their jobs. Therefore, it is crucial for family businesses in Lebanon to establish and implement policies and practices that foster fairness, transparency, and merit-based decision-making. By doing so, these businesses can enhance employee engagement and reduce turnover intention among their employees. The implications of this study can be valuable for Lebanese family business owners and managers seeking to mitigate the impact of nepotism on employee engagement and turnover intentions.