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Explorative and exploitative innovation: A perspective on CEO humility, narcissism, and market dynamism

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  • Nie, Xinyu
  • Yu, Mingchuan
  • Zhai, Yuming
  • Lin, Han

Abstract

Organizational innovation is characterized by exploration and exploitation. A firm can benefit from the qualities of its chief executive officer (CEO) if it understands to what extent those qualities are related to the organizational innovation. For context, Chinese culture embraces the belief of unity of opposites. Accordingly, CEO humility and CEO narcissism are not absolute opposites but are in fact complementary; therefore, they can coexist. Based on a sample of 239 manufacturing firms in China, we find that CEO humility promotes both exploitative and explorative innovation, while CEO narcissism weakens exploitative innovation. Additionally, the interaction between the two traits of the CEO strengthens both exploitative and explorative innovation. Contingency analysis further reveals that high-level market dynamism strengthens the positive interaction effect between CEO humility and CEO narcissism on both exploitative and explorative innovation. These findings contribute to the research on exploitative and explorative innovation.

Suggested Citation

  • Nie, Xinyu & Yu, Mingchuan & Zhai, Yuming & Lin, Han, 2022. "Explorative and exploitative innovation: A perspective on CEO humility, narcissism, and market dynamism," Journal of Business Research, Elsevier, vol. 147(C), pages 71-81.
    • Handle: RePEc:eee:jbrese:v:147:y:2022:i:c:p:71-81
    DOI: 10.1016/j.jbusres.2022.03.061
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    References listed on IDEAS

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    1. Lu Chen & Ming Yuan & Han Lin & Yilong Han & Youyou Yu & Caihui Sun, 2023. "Organizational improvisation and corporate green innovation: A dynamic capability perspective," Business Strategy and the Environment, Wiley Blackwell, vol. 32(8), pages 5686-5701, December.
    2. Al-khatib, Ayman wael & AL-Shboul, Moh'd Anwer & Khattab, Mais, 2024. "How can generative artificial intelligence improve digital supply chain performance in manufacturing firms? Analyzing the mediating role of innovation ambidexterity using hybrid analysis through CB-SE," Technology in Society, Elsevier, vol. 78(C).
    3. Jiang, Shuiquan & Yang, Jie & Yu, Mingchuan & Lin, Han & Li, Chao & Doty, Harold, 2022. "Strategic conformity, organizational learning ambidexterity, and corporate innovation performance: An inverted U-shaped curve?," Journal of Business Research, Elsevier, vol. 149(C), pages 424-433.
    4. wael AL-khatib, Ayman, 2023. "Drivers of generative artificial intelligence to fostering exploitative and exploratory innovation: A TOE framework," Technology in Society, Elsevier, vol. 75(C).
    5. Wenna Wang & Zhen Yang & Jin Chen & Jun He, 2024. "Economic policy uncertainty and enterprise ambidextrous innovation: Exploration or exploitation?," The Journal of Technology Transfer, Springer, vol. 49(4), pages 1234-1258, August.
    6. Lee, Jeoung Yul & Wei, Yingqi & Tang, Ryan W. & Choi, Byungchul & Cooke, Fang Lee, 2025. "CEO narcissism, subsidiary top management team international diversity, and radical digital innovation in multinational enterprises," Research Policy, Elsevier, vol. 54(6).
    7. Wang, Shaofeng & Zhang, Hao, 2025. "Generative artificial intelligence and internationalization green innovation: Roles of supply chain innovations and AI regulation for SMEs," Technology in Society, Elsevier, vol. 82(C).
    8. Yang, Yang & Xiao, Zheng, 2024. "Examining the interaction effect of digitalization and highly educated employees on ambidextrous innovation in Chinese publicly listed SMEs: A knowledge-based view," Technology in Society, Elsevier, vol. 78(C).
    9. Martínez-Ferrero, Jennifer & Ramón-Llorens, M. Camino & García-Meca, Emma, 2024. "CEO narcissism and ESG misconduct," Research in International Business and Finance, Elsevier, vol. 69(C).
    10. Chan, Kam C. & He, Jie & Li, Changwei & Zhang, Linlang, 2023. "Narcissistic managers and IPO underpricing," International Review of Financial Analysis, Elsevier, vol. 89(C).
    11. Joo, Youngbin & Georgakakis, Dimitrios & Sidhu, Jatinder S., 2025. "CEO career horizon and innovation: A u-shaped tale of short-term profits and long-term legacy," Research Policy, Elsevier, vol. 54(5).

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