The harder they fall, the faster they rise: Approach and avoidance focus in narcissistic CEOs

Drawing on theoretical underpinnings of approach-avoidance motivation and CEO narcissism, we provide a framework examining stronger approach focus (motivation towards desirable outcomes) and weaker avoidance focus (motivation away from undesirable outcomes) in narcissistic CEOs using a quasi-natural...

Full description

Saved in:
Bibliographic Details
Published in:Strategic management journal 2014-10, Vol.35 (10), p.1528-1540
Main Authors: Patel, Pankaj C., Cooper, Danielle
Format: Article
Language:English
Subjects:
approach motivation
avoidance motivation
Business entities
Business management
CEOs
Chief executive officers
Economic crises
Economic crisis
Economic motivation
Economic recessions
Experiments
Financial management
Investment risk
Investment strategies
Motivation
Narcissism
Organizational behavior
Personality traits
RESEARCH NOTES AND COMMENTARIES
Strategic management
Studies
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:Drawing on theoretical underpinnings of approach-avoidance motivation and CEO narcissism, we provide a framework examining stronger approach focus (motivation towards desirable outcomes) and weaker avoidance focus (motivation away from undesirable outcomes) in narcissistic CEOs using a quasi-natural experimental setting—the economic crisis beginning in 2007. Because highly narcissistic CEOs possess lower avoidance motivation in the precrisis period, their firms face greater declines in the onset of the crisis. However, their greater tendency towards approach motivation enables narcissistic CEOs to increase firm performance in the postcrisis period. While narcissistic CEOs are less likely to protect against potential shocks, they are adept at helping firms recover from such shocks. Using a sample of 392 CEOs representing 2,352 CEO firm-years, we find support for the proposed framework.
ISSN:0143-2095
1097-0266
DOI:10.1002/smj.2162