What I see, what I do: how executive hubris affects firm innovation. (2012)

“This study explores the potential benefits of executive hubris to firm innovation. Both studies render robust support to the authors’ main theoretical prediction – that executive hubris is positively related to firm innovation.

Yi Tang, Hong Kong Polytechnic University
Jiatao Li, Hong Kong University of Science and Technology
Hongyan Yang, Hong Kong Polytechnic University.

Journal of Management April 17, 2012 0149206312441211

This study explores the potential benefits of executive hubris to firm innovation.

Grounded in the upper echelons theory and the firm innovation literature, hypotheses were developed and tested in two studies with different contexts and methods. Study 1 uses a set of cross-sectional survey data on a large sample of Chinese CEOs in manufacturing industries. Study 2 uses a set of longitudinal archival data on U.S. public firms in high-tech industries.

Both studies render robust support to the authors’ main theoretical prediction – that executive hubris is positively related to firm innovation. The authors further found that the main effect varies under certain environmental conditions: The relationship between executive hubris and firm innovation becomes weaker when the environment is more munificent and complex.

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