Pride as a Double-Edged Sword: Effects of CEO Hubris on Firm Market Exploration and Exploitation (Abstract)

Yi Tang, Danny T Wang, Flora F. Gu

    Research output: Chapter in book/report/conference proceedingConference proceedingpeer-review


    Grounded in upper echelons theory and regulatory focus theory, this empirical study develops a theoretical model aiming to explicate the effect of CEO hubris, a prominent managerial bias, on market exploration and exploitation, as well as its boundary conditions. We predict that CEO hubris is positively related to market exploration while negatively related to market exploitation. Moreover, this study shows that those factors that affect a CEO’s information processing capacity can effectively moderate the hubris bias: the CEO’s industry experience weakens, whereas a high level of market uncertainty strengthens, the hubris effects. We test our hypotheses using a two- wave, multi-respondent original survey data set of Chinese trading companies. As a balance between market exploration and exploitation can enhance firm market performance, this study highlights the double-edged nature of CEO hubris. The results provide important implications for firms: it is possible to achieve superior market performance by bringing out the bright side while curtailing the dark side of CEO hubris.
    Original languageEnglish
    Title of host publicationAcademy of Management Proceedings 2014
    Place of PublicationPhiladelphia, PA
    PublisherAcademy of Management
    Number of pages6
    Publication statusPublished - Aug 2014
    Event74th Annual Meeting of the Academy of Management, AOM 2014: The Power of Words - Philadelphia, United States
    Duration: 1 Aug 20145 Aug 2014 (Conference program) (Conference proceedings)

    Publication series

    NameAcademy of Management Proceedings
    PublisherAcademy of Management
    ISSN (Print)0065-0668
    ISSN (Electronic)2151-6561


    Conference74th Annual Meeting of the Academy of Management, AOM 2014
    Country/TerritoryUnited States
    Internet address

    Scopus Subject Areas

    • Management Information Systems
    • Management of Technology and Innovation
    • Industrial relations


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