CEO grandiose narcissism and firm performance: The role of organizational identification

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CEO grandiose narcissism and firm performance: The role of organizational identification
The Leadership Quarterly

This study reconciles the positive and negative sides of CEO grandiose narcissism by examining the role that CEO organizational identification plays inmoderating the effect of CEO grandiose narcissism on top management team (TMT) behavioral integration. We first distinguish between grandiose and vulnerable narcissism and we then draw on upper echelons theory and executive personality research to hypothesize and test a model in which CEO grandiose narcissism is positively related to TMT behavioral integration when CEOs are high in organizational identification. The relationship is expected to be negative when CEOs do not identify stronglywith their organizations. TMT behavioral integration in turn predicts subsequent firm performance. Findings based on multi-source data from a sample of 97 CEOs and their firms supported the hypotheses. These results highlight the complex nature of CEO grandiose narcissism – namely that the construct has both positive and negative aspects as it relates to top management team dynamics and firm performance and that the relationship is affected by CEOs' identification with their
organizations.

Citation: 
The Leadership Quarterly 25 (2014) 958 – 971

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