Abstract
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 language | English |
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Title of host publication | Academy of Management Proceedings 2014 |
Place of Publication | Philadelphia, PA |
Publisher | Academy of Management |
Pages | 191-196 |
Number of pages | 6 |
DOIs | |
Publication status | Published - Aug 2014 |
Event | 74th Annual Meeting of the Academy of Management, AOM 2014: The Power of Words - Philadelphia, United States Duration: 1 Aug 2014 → 5 Aug 2014 http://pd.aom.org/2014/subMenu.asp?mode=setmenu&menuid=14 (Conference program) https://journals.aom.org/toc/amproc/2014/1 (Conference proceedings) |
Publication series
Name | Academy of Management Proceedings |
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Publisher | Academy of Management |
Number | 1 |
Volume | 2014 |
ISSN (Print) | 0065-0668 |
ISSN (Electronic) | 2151-6561 |
Conference
Conference | 74th Annual Meeting of the Academy of Management, AOM 2014 |
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Country/Territory | United States |
City | Philadelphia |
Period | 1/08/14 → 5/08/14 |
Internet address |
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Scopus Subject Areas
- Management Information Systems
- Management of Technology and Innovation
- Industrial relations