CEO narcissism, CEO duality, TMT agreeableness and firm performance

Abstract

PurposeThis study aims to investigate the relationship between Chief Executive Officer (CEO) narcissism and firm performance. Further, it examined the moderation effects of CEO duality and top management team (TMT) and board member agreeableness on the CEO narcissism–firm performance relationship.Design/methodology/approachThe study is based on survey data from 373 CEOs in the automobile industry in India. The paper used mixed method research where CEO narcissism and TMT agreeableness has been measured using survey instruments, other data such as firm performance has been captured using secondary sources.FindingsThe study confirms that the relationship between CEO narcissism and firm performance is curvilinear, meaning that narcissism can positively impact firm performance to a point, but may become counter-productive or ineffective beyond that. Further, CEO duality and TMT and board member agreeableness significantly impact this relationship.Originality/valueThis paper fulfills an identified need to study how CEO behavior can affect variance in firm performance. The authors discuss theoretical and practical implications and offer suggestions for future research.