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Narcissistic CEOs, dynamic capability, and green innovation
Le Chang1, Rui Liang2, Jinjin Zhang3
1Key Laboratory of Modern Acoustics (MOE), School of Physics, Nanjing University, China.
Heliyon
|August 21, 2023
Summary
Narcissistic CEOs can drive green innovation, with dynamic capabilities acting as a key mediator. However, top management risk aversion may dampen this effect, offering insights for sustainable business practices.
Area of Science:
- Business Administration
- Organizational Psychology
- Environmental Sustainability
Background:
- Green innovation is crucial for balancing economic value creation and ecological sustainability.
- Understanding psychological traits of CEOs and their impact on corporate strategy is vital.
- Dynamic capabilities are essential for firms to adapt and innovate in response to environmental changes.
Purpose of the Study:
- To investigate the influence of CEO narcissism on green innovation.
- To explore the mediating role of dynamic capability in the relationship between CEO narcissism and green innovation.
- To examine the moderating effect of top management risk aversion on this mediation.
Main Methods:
- Utilized upper echelons theory as the theoretical framework.
- Employed regression analysis to assess the direct and indirect effects.
- Conducted mediation and moderated mediation analyses to uncover underlying mechanisms.
Main Results:
- Narcissistic CEOs are associated with enhanced green innovation performance.
- Dynamic capability significantly mediates the link between CEO narcissism and corporate green innovation.
- Top management risk aversion negatively moderates the mediation effect, suggesting a dampening influence.
Conclusions:
- CEO personality traits, specifically narcissism, can positively influence corporate green innovation.
- Dynamic capability is a critical mechanism through which CEO narcissism translates into green innovation.
- Firms should consider the interplay between leadership traits and risk aversion when fostering green innovation strategies.
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