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Article
Publication date: 18 March 2021

Hasan Yousef Aljuhmani, Okechukwu Lawrence Emeagwali and Bashar Ababneh

This study aims to investigate the impact of chief executive officers' (CEO’s) core self-evaluation and grandiose narcissism on firm performance. This work combines bright and…

Abstract

Purpose

This study aims to investigate the impact of chief executive officers' (CEO’s) core self-evaluation and grandiose narcissism on firm performance. This work combines bright and dark personality sides to explore how complex CEO's behavioral characteristics affect firms' outcomes. In addition, top management team (TMT) behavioral integration is considered as an organizational setting that acts as a conductive device bridging CEOs behavioral characteristics with firms' performance.

Design/methodology/approach

The data for this study are based on 187 respondents, including CEOs and TMTs, across medium and large firms in Turkey through an online survey using a questionnaire. Structural equation modeling (SEM) was used to analyze the data collected.

Findings

The study finds that only CEO-TMT narcissism and TMT behavioral integration have a positive direct effect on firm financial performance. Contrary to expectations, CEO-TMT core self-evaluation has a negative direct effect on firm performance. Moreover, the results show that environmental dynamism interacts positively and significantly with CEO-TMT narcissism. Thus, the claim that TMT behavioral integration has a mediating effect is not supported in the context of medium and large firms in Turkey.

Originality/value

This study contributes to the upper echelons theory (UET) literature by highlighting the boundary conditions under which narcissistic CEOs can interact with more behaviorally integrated TMT members to exchange information, make joint decisions and collaborate in a relatively dynamic environment, as well as aggregating the bright side and dark side of CEOs personality traits and examining their effects alongside those of TMT behavioral integration on the firm performance. Finally, this study enriches the upper echelons literature by providing evidence from Turkey.

Details

International Journal of Organization Theory & Behavior, vol. 24 no. 2
Type: Research Article
ISSN: 1093-4537

Keywords

Article
Publication date: 18 February 2022

This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.

Abstract

Purpose

This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.

Design/methodology/approach

his briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.

Findings

The paper noted a wide range of findings but essentially suggests that CEOs with high levels of narcissism and grandiose visions would be well advised to favor TMTs that are more behaviorally integrated.

Originality/value

The briefing saves busy executives, strategists and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format. 10;

Details

Development and Learning in Organizations: An International Journal, vol. 36 no. 6
Type: Research Article
ISSN: 1477-7282

Keywords

Book part
Publication date: 10 April 2019

Aaron D. Hill, Oleg V. Petrenko, Jason W. Ridge and Federico Aime

This work describes and demonstrates a novel measurement system refered to as videometrics. Videometrics uses third-party ratings of video samples to assess individuals’…

Abstract

This work describes and demonstrates a novel measurement system refered to as videometrics. Videometrics uses third-party ratings of video samples to assess individuals’ characteristics with psychometrically validated instruments of the measures of interest. Videometrics is argued to help ensure valid measurement in difficult to access subject pools, offering substantial promise for future research. This work explains the methodology and demonstrates the applicability and validity of videometrics in multiple studies in the context of a difficult to access subject pool – chief executive officers (CEOs). Finally, the applicability of the method to samples for which lack of access to individuals of interest has limited empirical investigation is discussed.

Article
Publication date: 19 February 2018

Frerich Buchholz, Reemda Jaeschke, Kerstin Lopatta and Karen Maas

The purpose of this paper is to examine how CEO narcissism can be related to the usage of an abnormal optimistic tone in financial disclosures. Drawing on upper echelons theory…

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Abstract

Purpose

The purpose of this paper is to examine how CEO narcissism can be related to the usage of an abnormal optimistic tone in financial disclosures. Drawing on upper echelons theory, this paper suggests a link between CEO characteristics, such as narcissism, and accounting choices, such as optimistic financial reporting language.

Design/methodology/approach

To measure the narcissistic trait of a CEO, the study builds on a model using a set of 15 archival indicators. The usage of an abnormal optimistic tone is assessed quantitatively when looking at firms’ 10-K filings, where “abnormal” refers to tone that is unrelated to a firm’s performance, risk, and complexity. This approach allows for the use of firm-fixed effects for a sample of US listed firms over the period 1992-2012.

Findings

The results show that CEO narcissism is significantly positively related to abnormal optimistic tone in 10-K filings. If a highly abnormal optimistic tone is present, the level of CEO narcissism is positively related to the likelihood of future seasoned equity offerings and larger future investments in research and development.

Research limitations/implications

The findings are relevant for shareholders and stakeholders as well as auditors and legislators. All stakeholders should be aware of the overly optimistic reporting language resulting from CEO narcissism and need to make allowances for it when assessing firm performance based on financial disclosures.

Originality/value

This study is the first to show in a large-scale sample how CEO narcissism can be related to a firm’s use of optimistic language, and thus contributes to the question of how personality traits affect an organization’s financial reporting strategy.

Details

Accounting, Auditing & Accountability Journal, vol. 31 no. 2
Type: Research Article
ISSN: 0951-3574

Keywords

Article
Publication date: 11 August 2021

Stephen E. Lanivich, Laci M. Lyons and Anthony R. Wheeler

Social cognitive theory suggests that entrepreneurs' characteristics affect entrepreneurial outcomes through interaction with their environment. This study examines the…

Abstract

Purpose

Social cognitive theory suggests that entrepreneurs' characteristics affect entrepreneurial outcomes through interaction with their environment. This study examines the relationship between entrepreneurs' characteristics and performance in the context of entrepreneurial nascence.

Design/methodology/approach

This study investigated lagged-panel responses from a sample of 100 confirmed nascent entrepreneurs. Data collected on three separate occasions included core self-evaluations, commitment, fear of failure and success. PLS analysis was used to assess mediation of commitment on the self-evaluation – success relationship.

Findings

Core self-evaluations are an important predictor of entrepreneurial success in nascent-stage entrepreneurs participating in pre-venture assistance programs; positively affecting success and commitment, while negatively affecting fear of failure.

Research limitations/implications

This investigation contributes to a fuller understanding of social cognitive theory as it pertains to nascent entrepreneurship. Furthermore, contrary to general expectations found in the entrepreneurship literature, the authors uncover a context where entrepreneurs' characteristics are relevant predictors of early entrepreneurial outcomes.

Practical implications

Results showed core self-evaluations as a robust predictor of perceived success in nascent entrepreneurs. Administrators of pre-venture assistance programs should consider screening applicants to programs designed to assist nascent entrepreneurial opportunity development for signs of high core self-evaluations.

Originality/value

This study advances theory by (1) demonstrating the value of assessing nascent entrepreneurs' core self-evaluations as a specific predictor of early-stage entrepreneurial outcomes, (2) suggesting social interaction amidst participation in pre-venture assistance programs makes commitment a salient part of perceived success and (3) providing evidence that entrepreneur-level characteristics need consideration in the context of nascent entrepreneurship and pre-venture assistance programs.

Book part
Publication date: 8 June 2011

Steven W. Floyd and Rebekka Sputtek

Purpose – The purpose of this chapter is to advance research that relies on information from or about individuals and their role in strategic outcomes.Methodology/approach – We…

Abstract

Purpose – The purpose of this chapter is to advance research that relies on information from or about individuals and their role in strategic outcomes.

Methodology/approach – We start by identifying three streams of strategy research that call for individual-level data (upper echelons, micro-foundations, and strategy-as-practice) and proceed by examining the methods employed across 43 recent empirical studies.

Findings – Our analysis addresses three key challenges faced by researchers in these domains and catalogues the strategies used to surmount them.

Social implications – By helping to improve methods for research on individuals and strategy, this chapter advances understanding of how people throughout the organization may contribute to strategic outcomes.

Originality/value of paper – Our chapter is one of the first to analyze methods across three research domains that have heretofore been considered separate. In addition to describing what has been done, we suggest opportunities for improvement, frequently by finding ways to cross-fertilize methods from one stream into another.

Details

Building Methodological Bridges
Type: Book
ISBN: 978-1-78052-026-1

Keywords

Article
Publication date: 24 July 2020

Ayça Kubra Hizarci Payne and Alev Katrinli

This study aims to investigate how employees in export departments help firms develop dynamic capabilities that drive firm performance in global markets. It draws from the…

Abstract

Purpose

This study aims to investigate how employees in export departments help firms develop dynamic capabilities that drive firm performance in global markets. It draws from the previous scholarship in organizational behavior and international business.

Design/methodology/approach

Since microfoundations of firm capabilities have not received adequate attention in the context of international business, a qualitative research was carried out by conducting semistructured interviews with export managers to provide new theoretical and practical insights about the role of export department employees in developing firm capabilities.

Findings

The results show that organizational citizenship behavior and communication skills are the most highlighted characteristics of export department employees that underpin the improvement of firm capabilities, which in turn, boosts export performance. In addition, teamwork emerged as another contributing factor to firm capabilities.

Originality/value

This study addresses the microlevel foundations of firm capabilities within the context of international business by uncovering the characteristics of export department employees and their team-level contributions to the capabilities of exporting firms.

Details

Management Research Review, vol. 44 no. 1
Type: Research Article
ISSN: 2040-8269

Keywords

Article
Publication date: 2 March 2012

Fariss‐Terry Mousa and William Wales

This paper aims to explore the effects of entrepreneurial orientation (EO) on firm survival and examine whether founder chief executive officers (CEOs) are more effective than…

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Abstract

Purpose

This paper aims to explore the effects of entrepreneurial orientation (EO) on firm survival and examine whether founder chief executive officers (CEOs) are more effective than other types of managers at utilizing entrepreneurial orientation at initial public offerings (IPOs).

Design/methodology/approach

Using survival analysis the authors investigate the effects of EO on firm survival as well as the moderating role of founder CEOs.

Findings

The results suggest that EO increases post‐IPO survival. Further, founder‐CEOs moderate the EO‐survival relationship.

Originality/value

The paper shows that entrepreneurial orientation enhances long‐term survival in IPO firms. Survival is an important, though generally overlooked consideration in EO research. The paper also concludes that firms with founder CEOs are more likely to value and implement EO. Finally, the paper addresses calls for greater use of secondary measures of EO.

Article
Publication date: 4 September 2019

Leif Brändle, Stephan Golla and Andreas Kuckertz

Entrepreneurial orientation (EO) has been viewed almost exclusively through the lens of profit-driven firms. However, individuals engage in entrepreneurship not only for economic…

Abstract

Purpose

Entrepreneurial orientation (EO) has been viewed almost exclusively through the lens of profit-driven firms. However, individuals engage in entrepreneurship not only for economic reasons but also to enrich a community or to advance society. Drawing on upper echelons theory, the purpose of this paper is to address this issue by proposing that founders’ social identities shape the strategic choices of their ventures.

Design/methodology/approach

Drawing on the data from 318 founders in the early stages of their entrepreneurial activity, the study applies partial least squares structural equation modeling to empirically test whether founders’ social identities influence their ventures’ EO.

Findings

The findings of the current research show that founders whose dominant purpose is the creation of value for others are more likely to launch ventures oriented toward innovation. On the other hand, ventures of founders driven by economic self-interest accept more risk, which leads to higher performance outcomes on the enterprise, community and societal levels.

Originality/value

The study enhances the EO discussion by adding social identity theory as a way to explain different levels of EO in firms and answers the call for more diversity in EO–performance measurement by applying specific outcomes on the enterprise, community and societal levels to investigate whether a firm’s EO leads to the desired outcomes.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 25 no. 7
Type: Research Article
ISSN: 1355-2554

Keywords

Article
Publication date: 29 June 2022

Prachi Gala and Saim Kashmiri

This study aims to examine the effect of chief executive officer (CEO) integrity on organizations’ strategic orientation. The authors propose that CEOs who have high degrees of…

1239

Abstract

Purpose

This study aims to examine the effect of chief executive officer (CEO) integrity on organizations’ strategic orientation. The authors propose that CEOs who have high degrees of integrity tend to negatively influence each of the three core dimensions of entrepreneurial orientation (EO) – innovativeness, proactiveness and risk-taking. They also argue that this impact of CEO integrity is likely to be stronger for overconfident CEOs and the CEOs with high power. Furthermore, this negative relationship is expected to attenuate when the firm has high customer orientation and when the CEO is compensated with high equity-pay ratio.

Design/methodology/approach

Seemingly unrelated regression analysis was conducted on panel of 741 firm-year observations of 213 firms across 2014–2017. CEO integrity and each of the three dimensions of EO were measured using content analysis of CEOs’ letters to shareholders. CEO power was measured using CEO stock ownership and CEO duality. CEO overconfidence was measured by using options-based measure. Customer orientation was measured by using content analyses on annual reports. CEO equity-pay based ratio was measured as sum of value of stock and option awards divided by CEO’s total compensation. This study considered alternative measures and performed treatments for potential endogeneity, sample selection bias and outliers.

Findings

The research findings conclude that organizations with CEOs who have high integrity tend to have lower levels of all sub-dimensions of EO – innovativeness, proactiveness and risk-taking. Further, the results indicate that the negative effect that CEO integrity has, affects one of its dimensions – proactiveness, such that the relation is strengthened when the CEO has high power and is highly overconfident. This negative effect weakens when the CEO is compensated with high equity-pay ratio. The results also indicate that the negative effect of integrity and innovativeness and risk-taking weakens when the firm has high customer orientation.

Research limitations/implications

The research contributes to upper echelon theory literature by adding to the discussion of how business executives’ psychological traits map onto firm behavior. This research also finds common ground between literature on innovation and upper echelons, contributing to awareness about the drivers of firms’ EO.

Practical implications

This research addresses the question of firm relation to EO by highlighting that firms’ EO is also shaped by the psychological traits of their CEOs and the interaction of these traits with CEOs’ cognitive biases. Thus, board members of firms led by CEOs with high integrity can limit CEO’s risk-averse behavior by focusing on their training and by creating incentive systems. It is also advantageous for CEOs to understand that integrity is a double-edged sword, thus leveraging the strengths of their integrity, while simultaneously using tools such as training to diminish its negative aspects.

Originality/value

This paper fulfils a twofold identified need to: study the antecedents of each of the three dimensions of EO, not limited to corporate governance; and unearth the counterproductive behaviors associated with bright traits that make up their dark side

1 – 10 of 603