I’m Not Narcissistic, Just Really Important

6 November 2007 at 4:05 pm Leave a comment

| Peter Klein |

If you have the kind of sophisticated sense of humor I have, you enjoy Bud Light’s “Real Men of Genius” series. Yesterday I heard the salute to “Mr. Stadium Scoreboard Marriage Proposal Guy”:

You’ve combined the three things you love most in the this world:
Your girlfriend, your team, and lots and lots of attention.

I thought of that when reading Arijit Chatterjee and Donald Hambrick’s recent ASQ paper, “It’s All About Me: Narcissistic CEOs and Their Effects on Company Strategy and Performance” (working-paper version here).

This study uses unobtrusive measures of the narcissism of chief executive officers (CEOs) — the prominence of the CEO’s photograph in annual reports, the CEO’s prominence in press releases, the CEO’s use of first-person singular pronouns in interviews, and compensation relative to the second-highest-paid firm executive — to examine the effect of CEO narcissism on a firm’s strategy and performance. Results of an empirical study of 11 CEOs in the computer hardware and software industries in 1992-2004 show that narcissism in CEOs is positively related to strategic dynamism and grandiosity, as well as the number and size of acquisitions, and it engenders extreme and fluctuating organizational performance. The results suggest that narcissistic CEOs favor bold actions that attract attention, resulting in big wins or big losses, but that, in these industries, their firm’s performance is generally no better or worse than firms with non-narcissistic CEOs.

Remember, there’s no “I” in “team” — but if you look closely, you’ll find a “me.”

Entry filed under: - Klein -, Strategic Management, Theory of the Firm. Tags: .

Qualitative Comparative Analysis Hayek and Entrepreneurship

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Trackback this post  |  Subscribe to the comments via RSS Feed


Authors

Nicolai J. Foss | home | posts
Peter G. Klein | home | posts
Richard Langlois | home | posts
Lasse B. Lien | home | posts

Guests

Former Guests | posts

Networking

Recent Posts

Categories

Feeds

Our Recent Books

Nicolai J. Foss and Peter G. Klein, Organizing Entrepreneurial Judgment: A New Approach to the Firm (Cambridge University Press, 2012).
Peter G. Klein and Micheal E. Sykuta, eds., The Elgar Companion to Transaction Cost Economics (Edward Elgar, 2010).
Peter G. Klein, The Capitalist and the Entrepreneur: Essays on Organizations and Markets (Mises Institute, 2010).
Richard N. Langlois, The Dynamics of Industrial Capitalism: Schumpeter, Chandler, and the New Economy (Routledge, 2007).
Nicolai J. Foss, Strategy, Economic Organization, and the Knowledge Economy: The Coordination of Firms and Resources (Oxford University Press, 2005).
Raghu Garud, Arun Kumaraswamy, and Richard N. Langlois, eds., Managing in the Modular Age: Architectures, Networks and Organizations (Blackwell, 2003).
Nicolai J. Foss and Peter G. Klein, eds., Entrepreneurship and the Firm: Austrian Perspectives on Economic Organization (Elgar, 2002).
Nicolai J. Foss and Volker Mahnke, eds., Competence, Governance, and Entrepreneurship: Advances in Economic Strategy Research (Oxford, 2000).
Nicolai J. Foss and Paul L. Robertson, eds., Resources, Technology, and Strategy: Explorations in the Resource-based Perspective (Routledge, 2000).

Follow

Get every new post delivered to your Inbox.

Join 269 other followers