This study explores the aspects of the relationship between possible indicators of CEO narcissism and fraud. Highly narcissistic CEOs undertake challenging or bold actions to obtain frequent praise and admiration. The pursuit of narcissistic supply may result in a stronger likelihood of a CEO to undertake bold actions with potential detrimental consequences for the organization. The sample consists of all S&P 500 CEOs from 1992 till 2008 with more than 3 years of tenure. The measurement of CEO narcissism is based on 15 objective indicators and fits the main conceptualization of narcissism. This data collection provides a score for all S&P 500 CEOs according to their narcissistic tendencies. The Accounting and Auditing Enforcement Releases on the SEC’s website are the indicators of managerial fraud. The findings confirm the expected influence of plausible proxies for CEO narcissism on fraud by showing a positive relationship. This confirms the psychologic perspective of CEO narcissism as a potential cause of fraud.

Narcissus Enters the Courtroom: CEO Narcissism and Fraud

This article focuses on the interplay between narcissistic leaders and organizations. It attempts to capture the gist of this interplay with a model outlining the narcissistic organizational trajectory. The Energy Clash Model borrows and adapts a phase/state physics metaphor to conceptualize narcissism as a force that enters or emerges in a stable system (i.e., organization) as a leader, destabilizes it, and stabilizes it at a different state or is expelled. The model consists of three time-contingent phases: perturbation, conflict, and resolution. Narcissists create instability through waves of excitement, proposed reforms, and an inspiring vision for organization's future ( perturbation). With the passage of time, though, systemic awareness and alertness intensify, as organizational costs-in terms of human resources and monetary losses-accrue. Narcissistic energy clashes directly with the organization ( conflict), a clash likely to restabilize the system eventually. The conflict may provoke the exit of the narcissistic leader or his or her accommodation, that is, steps or controls negotiated between the system and the leader ( resolution). Although narcissism is subject to organizational liability, narcissistic energy, when managed and directed properly, may contribute to organizational innovation and evolution. Thus, several interventions for working with narcissistic leaders are discussed.

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Narcissistic Force Meets Systemic Resistance: The Energy Clash Model:

Addressing both practical and scholarly considerations, we investigated the interactive effects of perceived supervisor narcissism and individual enactment behavior on four relevant self-report work outcomes (i.e. frustration, tension, resource availability, and job performance). We hypothesized that employees with limited enactment behavior would be adversely affected in high supervisor narcissism settings. Conversely, we expected that perceived narcissistic supervision would have little effect on those with active enactment strategies. Across three samples, hypotheses were strongly supported as work frustration (Studies 1 and 3) and tension increased (Studies 1 and 2), and resource availability (Studies 1–3) and job performance (Studies 1–3) decreased for low enactment behavior–high perceived supervisor narcissism employees. Conversely, perceived supervisor narcissism had no significant effect for high enactment employees on any outcome across samples. These findings, when viewed in their entirety, conf...

Mirror, mirror on my boss’s wall: Engaged enactment’s moderating role on the relationship between perceived narcissistic supervision and work outcomes

We develop and test a process model demonstrating how leader charisma and constructive and destructive forms of narcissism interact to influence follower psychological empowerment and moral identity, using survey data from 667 direct reports of leaders from 13 different industries. Study results revealed that leader narcissism moderates the relationship between leader charisma and follower psychological empowerment such that when leaders possess a more constructive and less destructive narcissistic personality, their charisma has a stronger positive relationship with follower psychological empowerment. Study results also revealed that follower psychological empowerment mediates the differential interactive effects of leader charisma and constructive and destructive narcissism on follower moral identity. Implications of these results for future theory development, research, and practice are discussed.

Hang on to Your Ego: The Moderating Role of Leader Narcissism on Relationships Between Leader Charisma and Follower Psychological Empowerment and Moral Identity

Journal of Applied Management And Entrepreneurship

Situational Narcissism and Charismatic Leadership: A Conceptual Framework

Purpose – The purpose of this paper is to describe and analyze Alfred Chandler's ideological shift from American exceptionalism to transnational history in research assumptions to identify significant corollaries for the study of management history.Design/methodology/approach – Using the determinism‐indeterminism classifying framework proposed by Tucker, the paper classifies Chandler's works based on the extent to which they reflect Chandler's ideological commitment to exceptionalist versus transnational perspective.Findings – The paper found that the year of 1980 was the turning point for Chandler's ideological shift from American exceptionalism to a more transnational comparative perspective.Practical implications – The paper outlines the relevant implications of our findings for management history, calling for an emulation of Chandler's pursuit of comparative examinations of established concepts and management philosophy within the historical development of contemporary and past transnational firms and...

An ideological shift in Chandler's research assumptions: From American exceptionalism to transnational history

IntroductionAlthough mergers are a common growth strategy for many contemporary organizations (Kavanagh & Ashkanasy, 2006), history demonstrates that "such combinations often fall short of expectations" (Stahl, 2004: 3). Mergers are intended to create stronger firms (Lipponen, Olkkonen, & Moilanen, 2004), yet research indicates that most never achieve their objectives with 50 - 80 percent failing to meet anticipated potentials (Marks & Mirvis, 1986). Even mergers that appear to be successful in the short-term routinely turn out to be failed attempts in the long run (Fubini, Price, & Zollo, 2006), often due to inadequate employee identification with the new organization (Creasy, Stull, & Peck, 2009).While leadership is crucial to the implementation of organizational change, it is follower perceptions of leadership that generally determine post-merger success (Stahl, 2004), suggesting that the leadership needed to enhance the acculturation of followers with a merged organization should be viewed through a lens of social construction. Regrettably, the preponderance of the leadership literature underestimates the "socially constructed and reciprocal relationship between leaders and followers . . ." (DeRue & Ashford, 2010: 628). As a result, DeRue and Ashford (2010: 643) called for models of leadership that "illuminate" these processes.As a step towards such illumination, we argue that historical cases can offer a unique richness (Weick, 2007), identifying issues that require further investigation (Ordonez, Schweitzer, Galinsky, & Braverman, 2009), and supplying the foundation for further conceptual development (Humphreys, Pane Haden, Novicevic, Clayton, & Gibson, 201 1). During archival research of the primary Mexican American Civil Rights groups in South Texas in the 1920s, most of which eventually merged into the League of United Latin American Citizens (LULAC), we uncovered compelling intimation of the construction and preservation of a leadership identity capable of engendering enhanced post-merger follower identification. Accordingly, we examined the behaviors and beliefs of the principal founders of LULAC to reveal a process of post-merger leadership grounded in pragmatism and personalism that engendered the climate, trust, and commitment needed to enhance the behavior and identification necessary for organizational success and the maintenance of the leadership identity.To afford some context, we begin by describing the Mexican American Civil Rights movement and the founding of LULAC. Next, we review the literature on post-merger leadership and follower identification. We then provide the foundation for the outstanding leaders involved and the pragmatism and personalism exhibited in the successful merger that created the new organization (LULAC). Finally, we reflect upon our interpretation of these leader behaviors to propose a socially constructed post-merger model of leadership.The Mexican American Civil Rights Movement and the Founding of LULACWhen Americans hear the phrase Civil Rights movement, most immediately think of the struggle for African American Civil Rights. Far fewer, however, are aware that between 1 865 and 1920, more people of Mexican origin were lynched in the Southwest than were African Americans in the South (Yarsinske, 2004). According to the New York Times (November 18, 1922), unprovoked killings were so common in the early 1920s in Texas that they generally went unnoticed. As a result, Mexican Americans began to found civic organizations to confront their plight (Yarsinske, 2004). Sadly, many are not familiar with this earlier movement for Civil Rights in the United States. Fortuitously, we discovered Orozco's (2009) book, No Mexicans, Women, or Dogs Allowed, which detailed and substantiated the previously neglected rise of the Mexican American Civil Rights movement during this period.Our research of this movement began with the secondary data available in Orozco's (2009) historical scholarship followed by personal correspondence with the author. …

Duan Zhao

Papers

Situational Narcissism and Charismatic Leadership: A Conceptual Framework

An ideological shift in Chandler's research assumptions: From American exceptionalism to transnational history

Pragmatism and Personalism in Post-Merger Leadership: Lessons from the Founding of LULAC