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Me, myself, and I: influence of CEO narcissism on firms’ innovation strategy and the likelihood of product-harm crises

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  • Saim Kashmiri

    (University of Mississippi)

  • Cameron Duncan Nicol

    (Union University)

  • Sandeep Arora

    (University of Manitoba)

Abstract

This research examines the relationship between narcissistic personality characteristics in Chief Executive Officers (CEOs) and firms’ innovation outcomes. The authors argue that firms led by narcissistic CEOs are likely to exhibit a higher rate of new product introductions and a greater proportion of radical innovations in their new product portfolios, but they are also more likely to encounter product-harm crises. The impact of CEO narcissism on these innovation outcomes is partially mediated by firms’ higher competitive aggressiveness. High power of the marketing department in the top management team, however, increases firms’ customer orientation, which in turn weakens the relationship between CEO narcissism and product-harm crises. A longitudinal analysis of a sample of 395 publicly listed U.S. firms in the period 2006–2010 provides considerable support for the authors’ hypotheses. This research underscores the importance of studying CEOs’ personality traits as antecedents of firms’ innovation outcomes, highlights the positive and negative impact of CEO narcissism on firms’ innovation-related behavior, and delineates the process through which this impact takes place.

Suggested Citation

  • Saim Kashmiri & Cameron Duncan Nicol & Sandeep Arora, 2017. "Me, myself, and I: influence of CEO narcissism on firms’ innovation strategy and the likelihood of product-harm crises," Journal of the Academy of Marketing Science, Springer, vol. 45(5), pages 633-656, September.
    • Handle: RePEc:spr:joamsc:v:45:y:2017:i:5:d:10.1007_s11747-017-0535-8
    DOI: 10.1007/s11747-017-0535-8
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    5. Heba F. Zaher & Gilberto Marquez‐Illescas, 2024. "CEO narcissism and firm's cash conversion cycle: The moderating role of CEO's gender," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 64(1), pages 783-810, March.
    6. Fung, Hung-Gay & Qiao, Penghua & Yau, Jot & Zeng, Yuping, 2020. "Leader narcissism and outward foreign direct investment: Evidence from Chinese firms," International Business Review, Elsevier, vol. 29(1).
    7. Panagiotis Karavitis & Pantelis Kazakis & Tianyue Xu, 2021. "Overconfident CEOs, Corporate Social Responsibility & Tax Avoidance: Evidence from China," Working Papers 2021_18, Business School - Economics, University of Glasgow.
    8. Changjie Hu & Ming Liu, 2023. "Protect or Compete? Evidence of Firms’ Innovation from Import Penetration," JRFM, MDPI, vol. 16(4), pages 1-17, April.
    9. Qiao, Penghua & Long, Yang & Fung, Hung-Gay & Kao, Erin Hui-Chuan, 2022. "Narcissistic leaders and corporate cash Holdings: Evidence in China," The North American Journal of Economics and Finance, Elsevier, vol. 59(C).
    10. Joel Kiplagat Tuwey & Vincent Ngeno, 2019. "Does CEO Traits Influence Innovation? Evidence from the Kenya Banking Sector," Journal of Accounting, Business and Finance Research, Scientific Publishing Institute, vol. 7(2), pages 98-106.
    11. Arpita Agnihotri & Saurabh Bhattacharya, 2019. "CEO Narcissism and Internationalization by Indian Firms," Management International Review, Springer, vol. 59(6), pages 889-918, December.
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    13. Duan, Yunlong & Deng, Zhiqing & Liu, Hanxiao & Yang, Meng & Liu, Meiwu & Wang, Xiang, 2022. "Exploring the mediating effect of managerial ability on knowledge diversity and innovation performance in reverse cross-border M&As: Evidence from Chinese manufacturing corporations," International Journal of Production Economics, Elsevier, vol. 247(C).
    14. Bitty Balducci & Detelina Marinova, 2018. "Unstructured data in marketing," Journal of the Academy of Marketing Science, Springer, vol. 46(4), pages 557-590, July.
    15. Zixia Cao & Kehan Xu, 2022. "CEO narcissism, brand acquisition and disposal, and stock returns," Journal of the Academy of Marketing Science, Springer, vol. 50(4), pages 777-799, July.
    16. Manjunath Padigar & Ljubomir Pupovac & Ashish Sinha & Rajendra Srivastava, 2022. "The effect of marketing department power on investor responses to announcements of AI-embedded new product innovations," Journal of the Academy of Marketing Science, Springer, vol. 50(6), pages 1277-1298, November.
    17. Saeed Janani & Ranjit M. Christopher & Atanas Nik Nikolov & Michael A. Wiles, 2022. "Marketing experience of CEOs and corporate social performance," Journal of the Academy of Marketing Science, Springer, vol. 50(3), pages 460-481, May.
    18. Byun, Kyung-Ah (Kay) & Al-Shammari, Marwan, 2021. "When narcissistic CEOs meet power: Effects of CEO narcissism and power on the likelihood of product recalls in consumer-packaged goods," Journal of Business Research, Elsevier, vol. 128(C), pages 45-60.
    19. James R. Scotter, 2020. "Narcissism in CEO research: a review and replication of the archival approach," Management Review Quarterly, Springer, vol. 70(4), pages 629-674, November.
    20. Li, Huashan & Bapuji, Hari & Talluri, Srinivas & Singh, Prakash J., 2022. "A Cross-disciplinary review of product recall research: A stakeholder-stage framework," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 163(C).

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