Of course it can seriously impact a company or nation. Recently, there's been a call for more capable politicians to step up where I live. Our current Minister of Education is a notoriously stupid woman without any qualification beyond being a nurse. She was given her position because she knew people in a coalition party. There is no other way imaginable, as she's completely incompetent, and has been for years. Our premier studied history for eight years, then 'accidentally' fell up into a large business, then 'accidentally' became leader of a large political party, then 'accidentally' became premier and has now 'accidentally' ruined our economy even for Eurozone standards.
It's a natural method for human beings to grant their friends, acquaintances and family members the best positions. Unfortunately, convenience and social skills often do take precedence over actual skills.