This paper aims to explore whether and under what conditions chief executive officer (CEO) hubris benefits firm innovation performance. Drawing on upper echelons theory (UET), this study analyzes the mediating role of top management team (TMT) cohesion in CEO hubris and firm innovation performance and the moderating role of chief operating officer (COO) hubris in the relationship between CEO hubris and TMT cohesion.
This paper tests proposed relationships based on data collected from 558 top managers of 186 firms in China using regression methods.
Results show that CEO hubris positively affects firm innovation performance, and the effect is mediated by TMT cohesion. Additionally, COO hubris mitigated the positive effect of CEO hubris on TMT cohesion.
This study advances innovation research by confirming the bright side of CEO hubris on innovation. By demonstrating how the effect between CEO hubris and innovation is mediated by TMT mechanisms and moderated by other core TMT members’ hubris, this study also contributes to hubris literature and TMT literature.
