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“Of Course I Can†: The Effect of CEO Overconfidence on Entrepreneurially Oriented Firms

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  • Andreas Engelen
  • Christoph Neumann
  • Christian Schwens

Abstract

Guided by the upper echelons theory, this research examines the relationship between chief executive officer (CEO) overconfidence and a firm's entrepreneurial orientation (EO). The study theoretically establishes and empirically validates an increasing effect of CEO overconfidence on EO, although at a decreasing rate. Empirical results are based on a multisource secondary data set for high–tech S&P 500 firms from 2005 to 2007. Findings further indicate that the proposed relationship between CEO overconfidence and EO is moderated by market dynamism. A theoretically established moderating effect of market concentration could not be validated empirically.

Suggested Citation

  • Andreas Engelen & Christoph Neumann & Christian Schwens, 2015. "“Of Course I Can†: The Effect of CEO Overconfidence on Entrepreneurially Oriented Firms," Entrepreneurship Theory and Practice, , vol. 39(5), pages 1137-1160, September.
    • Handle: RePEc:sae:entthe:v:39:y:2015:i:5:p:1137-1160
    DOI: 10.1111/etap.12099
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