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Explorative and exploitative innovation: A perspective on CEO humility, narcissism, and market dynamism

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  • Nie, Xinyu
  • Yu, Mingchuan
  • Zhai, Yuming
  • Lin, Han

Abstract

Organizational innovation is characterized by exploration and exploitation. A firm can benefit from the qualities of its chief executive officer (CEO) if it understands to what extent those qualities are related to the organizational innovation. For context, Chinese culture embraces the belief of unity of opposites. Accordingly, CEO humility and CEO narcissism are not absolute opposites but are in fact complementary; therefore, they can coexist. Based on a sample of 239 manufacturing firms in China, we find that CEO humility promotes both exploitative and explorative innovation, while CEO narcissism weakens exploitative innovation. Additionally, the interaction between the two traits of the CEO strengthens both exploitative and explorative innovation. Contingency analysis further reveals that high-level market dynamism strengthens the positive interaction effect between CEO humility and CEO narcissism on both exploitative and explorative innovation. These findings contribute to the research on exploitative and explorative innovation.

Suggested Citation

  • Nie, Xinyu & Yu, Mingchuan & Zhai, Yuming & Lin, Han, 2022. "Explorative and exploitative innovation: A perspective on CEO humility, narcissism, and market dynamism," Journal of Business Research, Elsevier, vol. 147(C), pages 71-81.
    • Handle: RePEc:eee:jbrese:v:147:y:2022:i:c:p:71-81
    DOI: 10.1016/j.jbusres.2022.03.061
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    2. Martínez-Ferrero, Jennifer & Ramón-Llorens, M. Camino & García-Meca, Emma, 2024. "CEO narcissism and ESG misconduct," Research in International Business and Finance, Elsevier, vol. 69(C).
    3. Lu Chen & Ming Yuan & Han Lin & Yilong Han & Youyou Yu & Caihui Sun, 2023. "Organizational improvisation and corporate green innovation: A dynamic capability perspective," Business Strategy and the Environment, Wiley Blackwell, vol. 32(8), pages 5686-5701, December.
    4. Chan, Kam C. & He, Jie & Li, Changwei & Zhang, Linlang, 2023. "Narcissistic managers and IPO underpricing," International Review of Financial Analysis, Elsevier, vol. 89(C).
    5. Jiang, Shuiquan & Yang, Jie & Yu, Mingchuan & Lin, Han & Li, Chao & Doty, Harold, 2022. "Strategic conformity, organizational learning ambidexterity, and corporate innovation performance: An inverted U-shaped curve?," Journal of Business Research, Elsevier, vol. 149(C), pages 424-433.
    6. wael AL-khatib, Ayman, 2023. "Drivers of generative artificial intelligence to fostering exploitative and exploratory innovation: A TOE framework," Technology in Society, Elsevier, vol. 75(C).

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