Dispositional sources of managerial discretion: CEO ideology, CEO personality, and firm strategies
View / Open Files
Authors
Gupta, A
Nadkarni, S
Mariam, M
Publication Date
2019-12Journal Title
Administrative Science Quarterly
ISSN
0001-8392
Publisher
Cornell University Press
Volume
64
Issue
4
Pages
855-893
Type
Article
Metadata
Show full item recordCitation
Gupta, A., Nadkarni, S., & Mariam, M. (2019). Dispositional sources of managerial discretion: CEO ideology, CEO personality, and firm strategies. Administrative Science Quarterly, 64 (4), 855-893. https://doi.org/10.1177/0001839218793128
Abstract
We investigate the dispositional sources of managerial discretion by theorizing that CEOs’ personality traits – narcissism and extraversion – will affect the extent to which firm strategies reflect their preferences. In a longitudinal study of Fortune 500 firms, we examine the moderating influence of CEO narcissism and extraversion on the relationship between CEO political ideology (on the conservatism-liberalism axis) and value-congruent firm strategies, corporate social responsibility (CSR) and downsizing. We find that extraversion strengthened the effect of CEO ideologies on both CSR and downsizing. In contrast, narcissism strengthened the effect of CEO liberalism on CSR but did not significantly moderate the effect of CEO conservatism on downsizing. In a supplementary study using primary data from working professionals, we further explore the distinct mechanisms associated with the two personality traits. We find that narcissism related strongly to individuals’ inflated perception of their discretion, whereas extraversion related to individuals’ issue selling ability. Overall, our study furthers research on managerial discretion by providing nuanced theory and evidence on innate sources of CEO influence, and on CEO political ideology by spotlighting the dispositional boundary conditions of its effects on firm strategies.
Identifiers
External DOI: https://doi.org/10.1177/0001839218793128
This record's URL: https://www.repository.cam.ac.uk/handle/1810/284200
Rights
Licence:
http://www.rioxx.net/licenses/all-rights-reserved
Statistics
Total file downloads (since January 2020). For more information on metrics see the
IRUS guide.
Recommended or similar items
The current recommendation prototype on the Apollo Repository will be turned off on 03 February 2023. Although the pilot has been fruitful for both parties, the service provider IKVA is focusing on horizon scanning products and so the recommender service can no longer be supported. We recognise the importance of recommender services in supporting research discovery and are evaluating offerings from other service providers. If you would like to offer feedback on this decision please contact us on: support@repository.cam.ac.uk