In pursuit of greatness: CEO narcissism, entrepreneurial orientation, and firm performance variance

Journal of Management Studies

Volumn 50, Issue 6, 2013, Pages 1041-1069

  Wales, William J ^a   Patel, Pankaj C ^b   Lumpkin, G T ^c  

^a JAMES MADISON UNIVERSITY   (United States)

^b BALL STATE UNIVERSITY   (United States)

^c SYRACUSE UNIVERSITY   (United States)

Author keywords

CEO leadership traits; Entrepreneurial orientation; Firm performance variance; Narcissism; Strategic posture

Indexed keywords

EID: 84882282336     PISSN: 00222380     EISSN: 14676486     Source Type: Journal    
DOI: 10.1111/joms.12034     Document Type: Article

References (100)

1. Aldrich, H. E. (1979). Organizations and Environments. Englewood Cliffs, NJ: Prentice Hall.
2. American Psychiatric Association (APA) (2000). DSM IV: Diagnostic and Statistical Manual of Mental Disorders, 4th edition. Arlington, VA: American Psychiatric Association.
3. Ames, D. R. and Kammrath, L. K. (2004). 'Mind-reading and metacognition: narcissism, not actual competence, predicts self-estimated ability'. Journal of Nonverbal Behavior, 28, 187-209.
4. Ames, D. R., Rose, P. and Anderson, C. P. (2006). 'The NPI-16 as a short measure of narcissism'. Journal of Research in Personality, 40, 440-450.
5. Anderson, B. S., Covin, J. G. and Slevin, D. P. (2009). 'Understanding the relationship between entrepreneurial orientation and strategic learning capability: an empirical investigation'. Strategic Entrepreneurship Journal, 3, 218-240.
6. Baird, C. and Thomas, A. S. (1985). 'Toward a contingency model of strategic risk taking'. Academy of Management Review, 10, 230-243.
7. Baron, R. M. and Kenny, D. A. (1986). 'The moderator-mediator variable distinction in social psychological research: conceptual, strategic, and statistical considerations'. Journal of Personality and Social Psychology, 51, 1173-1182.
8. Bergman, J. Z., Westerman, J. W. and Daly, J. P. (2010). 'Narcissism in management education'. Academy of Management Learning & Education, 9, 119-131.
9. Bierly, P. E., Damanpour, F. and Santoro, M. D. (2009). 'The application of external knowledge: organizational conditions for exploration and exploitation'. Journal of Management Studies, 46, 481-509.
10. Bollaert, H. and Petit, V. R. (2010). 'Beyond the dark side of executive psychology: current research and new directions'. European Management Journal, 28, 362-376.
11. Bushman, R. M., Indjejikian, R. J. and Smith, A. (1996). 'CEO compensation: the role of individual performance evaluation'. Journal of Accounting and Economics, 21, 161-193.
12. Campbell, W. K., Reeder, G. D., Sedikides, C. and Elliot, A. J. (2000). 'Narcissism and comparative self-enhancement strategies'. Journal of Research in Personality, 34, 329-347.
13. Campbell, W. K., Rudich, E. A. and Sedikides, C. (2002). 'Narcissism, self-esteem, and the positivity of self-views: two portraits of self-love'. Personality and Social Psychology Bulletin, 28, 358-368.
14. Campbell, W. K., Goodie, A. S. and Foster, J. D. (2004). 'Narcissism, confidence, and risk attitude'. Journal of Behavioral Decision Making, 17, 297-311.
15. Campbell, W. K., Bush, C. P., Brunell, A. B. and Shelton, J. (2005). 'Understanding the social costs of narcissism: the case of the tragedy of the commons'. Personality and Social Psychology Bulletin, 31, 1358-1368.
16. Campbell, W. K., Bosson, J. K., Goheen, T. W., Lakey, C. E. and Kernis, M. H. (2007). 'Do narcissists dislike themselves "deep down inside"?'. Psychological Science, 18, 227-229.
17. Chandler, G. N., McKelvie, A. and Davidsson, P. (2009). 'Asset specificity and behavioral uncertainty as moderators of the sales growth-employment growth relationship in emerging ventures'. Journal of Business Venturing, 24, 373-387.
18. Chatterjee, A. and Hambrick, D. C. (2007). 'It's all about me: narcissistic chief executive officers and their effects on company strategy and performance'. Administrative Science Quarterly, 52, 351-386.
19. Coombes, S. M., Morris, M. H., Allen, J. A. and Webb, J. W. (2011). 'Behavioural orientations of non-profit boards as a factor in entrepreneurial performance: does governance matter?'. Journal of Management Studies, 48, 829-856.
20. Covin, J. G. and Slevin, D. P. (1989). 'Strategic management of small firms in hostile and benign environments'. Strategic Management Journal, 10, 75-87.
21. Covin, J. G. and Slevin, D. P. (1991). 'A conceptual model of entrepreneurship as firm behavior'. Entrepreneurship: Theory & Practice, 16, 7-25.
22. Covin, J. G. and Wales, W. J. (2012). 'The measurement of entrepreneurial orientation'. Entrepreneurship: Theory & Practice, 36, 677-702.
23. Covin, J. G., Green, K. M. and Slevin, D. P. (2006). 'Strategic process effects on the EO-sales growth rate relationship'. Entrepreneurship: Theory & Practice, 30, 57-81.
24. Cycyota, C. S. and Harrison, D. A. (2002). 'Enhancing survey response rates at the executive level: are employee or consumer-level techniques effective?'. Journal of Management, 28, 151-176.
25. Delgado-Garcia, J. B. and De La Fuente-Sabate, J. M. (2010). 'How do CEO emotions matter? Impact of CEO affective traits on strategic and performance conformity in the Spanish banking industry'. Strategic Management Journal, 31, 562-574.
26. Dess, G. G. and Beard, D. W. (1984). 'Dimensions of organizational task environments'. Administrative Science Quarterly, 29, 52-73.
27. Dess, G. G. and Lumpkin, G. T. (2005). 'The role of entrepreneurial orientation in stimulating effective corporate entrepreneurship'. Academy of Management Executive, 19, 147-156.
28. Edwards, J. R. and Lambert, L. S. (2007). 'Methods for integrating moderation and mediation: a general analytical framework using moderated path analysis'. Psychological Methods, 12, 1-22.
29. Fama, E. F. and MacBeth, J. D. (1973). 'Risk, return, and equilibrium: empirical tests'. Journal of Political Economy, 81, 607-636.
30. Foster, J. D. and Campbell, W. K. (2007). 'Are there such things as "narcissists" in social psychology? A taxometric analysis of the Narcissistic Personality Inventory'. Personality and Individual Differences, 43, 1321-1332.
31. Foster, J. D., Campbell, W. K. and Twenge, J. M. (2003). 'Individual differences in narcissism: inflated self-views across the lifespan and around the world'. Journal of Research in Personality, 37, 469-486.
32. Garvin, D. A. (2004). 'What every CEO should know about creating new businesses'. Harvard Business Review, 82, 18-21.
33. George, B. A. (2011). 'Entrepreneurial orientation: a theoretical and empirical examination of the consequences of differing construct representations'. Journal of Management Studies, 48, 1291-1313.
34. Goel, A. M. and Thakor, A. V. (2008). 'Overconfidence, CEO selection, and corporate governance'. Journal of Finance, 63, 2737-2784.
35. Guth, W. D. and Ginsberg, A. (1990). 'Guest editors' introduction: Corporate entrepreneurship'. Strategic Management Journal, 11, 5-15.
36. Hambrick, D. C. and Mason, P. A. (1984). 'Upper echelons: the organization as a reflection of its top managers'. Academy of Management Review, 9, 193-206.
37. Harrison, D. A. and Klein, K. J. (2007). 'What's the difference? Diversity constructs as separation, variety, or disparity in organizations'. Academy of Management Review, 32, 1199-1228.
38. Hayes, A. F. (2009). 'Beyond Baron and Kenny: statistical mediation analysis in the new millennium'. Communication Monographs, 76, 408-420.
39. Hayward, M. L., Shepherd, D. A. and Griffin, D. (2006). 'A hubris theory of entrepreneurship'. Management Science, 52, 160-172.
40. Heeley, M. B., King, D. and Covin, J. G. (2006). 'Effects of firm R&D investment level and environment on acquisition likelihood'. Journal of Management Studies, 43, 1513-1536.
41. Hmieleski, K. M. and Corbett, A. C. (2008). 'The contrasting interaction effects of improvisational behavior with entrepreneurial self-efficacy on new venture performance and entrepreneur work satisfaction'. Journal of Business Venturing, 23, 482-496.
42. Hoskisson, R. E., Covin, J., Volberda, H. W. and Johnson, R. A. (2011). 'Revitalizing entrepreneurship: the search for new research opportunities'. Journal of Management Studies, 48, 1141-1168.
43. Hu, L. T. and Bentler, P. M. (1998). 'Fit indices in covariance structure modeling: sensitivity to underparameterized model misspecification'. Psychological Methods, 3, 424-453.
44. Judge, T. A., LePine, J. A. and Rich, B. L. (2006). 'Loving yourself abundantly: relationship of the narcissistic personality to self- and other perceptions of workplace deviance, leadership, and task and contextual performance'. Journal of Applied Psychology, 91, 762-776.
45. Judge, T. A., Piccolo, R. F. and Kosalka, T. (2009). 'The bright and dark sides of leader traits: a review and theoretical extension of the leader trait paradigm'. Leadership Quarterly, 20, 855-875.
46. Keats, B. W. and Hitt, M. A. (1988). 'A causal model of linkages among environmental dimensions, macro organizational characteristics, and performance'. Academy of Management Journal, 31, 570-598.
47. Kets de Vries, M. F. and Miller, D. (1985). 'Narcissism and leadership: an object relations perspective'. Human Relations, 38, 583-601.
48. Knight, F. H. (1921). Risk, Uncertainty, and Profit. Boston, MA: Hart, Schaffner, & Marx.
49. Kolev, G. I. (2008). 'The stock market bubble, shareholders' attribution bias and excessive top CEO pay'. Journal of Behavioral Finance, 9, 62-71.
50. Krippendorff, K. (2004). Content Analysis: An Introduction to Its Methodology. Thousand Oaks, CA: Sage.
51. Lakey, C. E., Rose, P., Campbell, W. K. and Goodie, A. S. (2008). 'Probing the link between narcissism and gambling: the mediating role of judgment and decision-making biases'. Journal of Behavioral Decision Making, 21, 113-137.
52. Lee, G. K. and Lieberman, M. B. (2010). 'Acquisition vs. internal development as modes of market entry'. Strategic Management Journal, 31, 140-158.
53. Lee, G. K. and Paruchuri, S. (2008). 'Entry into emergent and uncertain product-markets: the role of associative rhetoric'. Academy of Management Journal, 51, 1171-1188.
54. Lindell, M. K. and Whitney, D. J. (2001). 'Accounting for common method variance in cross-sectional research designs'. Journal of Applied Psychology, 86, 114-121.
55. Ling, Y., Simsek, Z., Lubatkin, M. H. and Veiga, J. F. (2008). 'Transformational leadership's role in promoting corporate entrepreneurship: examining the CEO-TMT interface'. Academy of Management Journal, 51, 557-576.
56. Lobuts, J. F. and Pennewill, C. L. (1986). 'Risk-free decision making'. Journal of Business Ethics, 5, 29-37.
57. Lubit, R. (2002). 'The long-term organizational impact of destructively narcissistic managers'. Academy of Management Executive, 16, 127-138.
58. Lumpkin, G. T. and Dess, G. G. (1996). 'Clarifying the entrepreneurial orientation construct and linking it to performance'. Academy of Management Review, 21, 135-172.
59. Maccoby, M. (2000). 'Narcissistic leaders'. Harvard Business Review, 78, 68-77.
60. Maccoby, M. (2004). The Productive Narcissist: The Promise and Peril of Visionary Leadership. New York: Broadway Books.
61. March, J. G. (1991). 'Exploration and exploitation in organizational learning'. Organization Science, 2, 71-87.
62. Miller, D. (1983). 'The correlates of entrepreneurship in three types of firms'. Management Science, 29, 770-791.
63. Miller, D. (2011). 'Miller (1983) revisited: a reflection on EO research and some suggestions for the future'. Entrepreneurship: Theory & Practice, 35, 873-894.
64. Miller, D. and Friesen, P. H. (1978). 'Archetypes of strategy formulation'. Management Science, 24, 921-933.
65. Miller, D. and Friesen, P. H. (1982). 'Innovation in conservative and entrepreneurial firms: two models of strategic momentum'. Strategic Management Journal, 3, 1-25.
66. Miller, D. and Le Breton-Miller, I. (2011). 'Governance, social identity, and entrepreneurial orientation in closely held public companies'. Entrepreneurship: Theory & Practice, 35, 1051-1076.
67. Miller, K. D. and Bromiley, P. (1990). 'Strategic risk and corporate performance: an analysis of alternative risk measures'. Academy of Management Journal, 33, 756-779.
68. Mintzberg, H. (1973). 'Strategy-making in three modes'. California Management Review, 16, 44-53.
69. Morf, C. C. and Rhodewalt, F. (2001). 'Unraveling the paradoxes of narcissism: a dynamic self-regulatory processing model'. Psychological Inquiry, 12, 177-196.
70. O'Brien, R. M. (2007). 'A caution regarding rules of thumb for variance inflation factors'. Quality and Quantity, 41, 673-690.
71. Podsakoff, P. M. and Organ, D. W. (1986). 'Self-reports in organizational research: problems and prospects'. Journal of Management, 12, 531-544.
72. Preacher, K. J., Rucker, D. D. and Hayes, A. F. (2007). 'Addressing moderated mediation hypotheses: theory, methods, and prescriptions'. Multivariate Behavioral Research, 42, 185-227.
73. Puranam, P. and Srikanth, K. (2007). 'What they know vs. what they do: how acquirers leverage technology acquisitions'. Strategic Management Journal, 28, 805-825.
74. Puranam, P., Singh, H. and Chaudhuri, S. (2009). 'Integrating acquired capabilities: when structural integration is (un)necessary'. Organization Science, 20, 313-328.
75. Raskin, R. and Terry, H. (1988). 'A principal-components analysis of the Narcissistic Personality Inventory and further evidence of its construct validity'. Journal of Personality and Social Psychology, 54, 890-902.
76. Rauch, A., Wiklund, J., Lumpkin, G. T. and Frese, M. (2009). 'Entrepreneurial orientation and business performance: an assessment of past research and suggestions for the future'. Entrepreneurship: Theory & Practice, 33, 761-787.
77. Resick, C. J., Whitman, D. S., Weingarden, S. M. and Hiller, N. J. (2009). 'The bright-side and the dark-side of CEO personality: examining core self-evaluations, narcissism, transformational leadership, and strategic influence'. Journal of Applied Psychology, 94, 1365-1381.
78. Reynolds, W. M. (1982). 'Development of reliable and valid short forms of the Marlowe-Crowne social desirability scale'. Journal of Clinical Psychology, 38, 119-125.
79. Richardson, H. A., Simmering, M. J. and Sturman, M. C. (2009). 'A tale of three paradigms: examining post hoc statistical corrections for common method variance from three divergent perspectives'. Organizational Research Methods, 12, 762-800.
80. Rosenthal, S. A. and Pittinsky, T. L. (2006). 'Narcissistic leadership'. Leadership Quarterly, 17, 617-633.
81. Samuel, B. B. and Widiger, T. A. (2008). 'Convergence of narcissism measures from the perspective of general personality functioning'. Assessment, 15, 364-374.
82. Särndal, C. E., Swensson, B. and Wretman, J. (2003). Model Assisted Survey Sampling. New York: Springer.
83. Sharfman, M. (1998). 'On the advisability of using CEOs as the sole informant in strategy research'. Journal of Managerial Issues, 10, 373-392.
84. Simsek, Z., Heavey, C. and Veiga, J. F. (2010). 'The impact of CEO core self-evaluation on the firm's entrepreneurial orientation'. Strategic Management Journal, 31, 110-119.
85. Sine, W. D., Mitsuhashi, H. and Kirsch, D. A. (2006). 'Revisiting Burns and Stalker: formal structure and new venture performance in emerging economic sectors'. Academy of Management Journal, 49, 121-132.
86. Sirmon, D. G., Hitt, M. A. and Ireland, R. D. (2007). 'Managing firm resources in dynamic environments to create value: looking inside the black box'. Academy of Management Review, 32, 273-292.
87. Strahan, R. and Gerbasi, K. C. (1972). 'Short, homogeneous versions of the Marlow-Crowne social desirability scale'. Journal of Clinical Psychology, 28, 191-193.
88. Tang, J., Crossan, M. and Rowe, W. G. (2011). 'Dominant CEO, deviant strategy, and extreme performance: the moderating role of a powerful board'. Journal of Management Studies, 48, 1479-1503.
89. Thompson, E. R. and Phua, F. T. (2005). 'Reliability among senior managers of the Marlowe-Crowne short-form Social Desirability Scale'. Journal of Business and Psychology, 19, 541-554.
90. Twenge, J. M. and Foster, J. D. (2008). 'Mapping the scale of the narcissism epidemic: increases in narcissism 2002-2007 within ethnic groups'. Journal of Research in Personality, 42, 1619-1622.
91. Twenge, J. M., Konrath, S., Foster, J. D., Keith Campbell, W. and Bushman, B. J. (2008). 'Egos inflating over time: a cross temporal meta analysis of the narcissistic personality inventory'. Journal of Personality, 76, 875-902.
92. Vazire, S. and Funder, D. C. (2006). 'Impulsivity and the self-defeating behavior of narcissists'. Personality & Social Psychology Review, 10, 154-165.
93. Venkatraman, N. (1989a). 'The concept of fit in strategy research: toward verbal and statistical correspondence'. Academy of Management Review, 14, 423-444.
94. Venkatraman, N. (1989b). 'Strategic orientation of business enterprises: the construct, dimensionality, and measurement'. Management Science, 35, 942-962.
95. Wales, W., Monsen, E. and McKelvie, A. (2011). 'The organizational pervasiveness of entrepreneurial orientation'. Entrepreneurship: Theory & Practice, 35, 895-923.
96. Watson, P. J., Sawrie, S. M. and Biderman, M. D. (1991). 'Personal control, assumptive worlds, and narcissism'. Journal of Social Behavior and Personality, 6, 929-941.
97. Wiklund, J. (1999). 'The sustainability of the entrepreneurial orientation-performance relationship'. Entrepreneurship: Theory & Practice, 24, 37-48.
98. Wiklund, J. and Shepherd, D. (2011). 'Where to from here? EO-as-experimentation, failure, and distribution of outcomes'. Entrepreneurship: Theory and Practice, 35, 925-946.
99. Williams, L. J., Hartman, N. and Cavazotte, F. (2010). 'Method variance and marker variables: a review and comprehensive CFA marker technique'. Organizational Research Methods, 13, 477-514.
100. Wink, P. and Donahue, K. (1997). 'The relation between two types of narcissism and boredom'. Journal of Research in Personality, 31, 136-140.