Research On The Relationship Between Narcissism,Strategic Adjustment,and Corporate Performance

Upper Echelons Theory suggests that managerial personality traits will affect corporate decision-making and corporate strategy implementation,and narcissism is one of the personality traits that managers may possess,and it has gradually entered the research field of scholars.Narcissism refers to overestimating its charm and ability,with an inflated self-view and seeking to have that self-view continuously reinforced.Whether the narcissistic managers bring positive or negative impact to the company,the research conclusions are not unified,and all are discussed from the perspective of CEO.Some scholars have found that in decision-making style,narcissistic managers usually tend to take bold attitudes and risky actions,while managers with low narcissism emphasize operational stability.Strategic adjustment refers to the process in which enterprises adjust and reallocate their key activity resources to adapt to changes in the external environment.However,the academic circles have different conclusions about the influences of strategic adjustments on enterprises.However,to a certain extent,strategic adjustment is indeed a "bold behavior" of an enterprise.Therefore,is there some inevitable connections between the degree of narcissism of the executive team,strategic adjustment and corporate performance?This article uses 589 data samples from 2014-2018 of GEM listed companies to conduct an empirical analysis.From a Upper Echelons theortic perspective,it empirically analyzes the relationship between executive team narcissism,strategic adjustment and corporate performance,as well as the moderating role of environmental uncertainty.The empirical results show that the degree of narcissism of the executive team negatively affects corporate performance,but it has a positive correlation with corporate strategic adjustment,and strategic adjustment has a partial mediation effect between the narcissism of the executive team and corporate performance,but the moderating effect of environmental uncertainty between narcissism and corporate strategic adjustment is not significant.The research significance of this article is mainly several points: First,the thesis is an attempt to measure narcissism with second-hand data in China.Drawing on foreign scholars' measurement methods of narcissism,text analysis is conducted based on the speeches made by the senior management team at the performance briefing,and then the degree of TMT narcissism is measured.Second,it has enriched the relevant research results of Upper Echelons Theory.For the personality trait of narcissism,most of the relevant research in academia is carried out in the context of Western companies,and there are not many theoretical achievements in China.Third,the research framework of this article is a supplement and extension to previous scholars 'research.Most of the previous research perspectives on manager narcissism are based on the role of CEO.This article is based on the perspective of the GEM executive team.In addition,there have been few previous studies on the relationship between narcissism,strategic adjustment,and corporateperformance.This paper uses this as a research framework for empirical analysis.