This study aims to examine how grandiose and vulnerable narcissism influence funding success in an emerging market context. Drawing on social exchange theory, it investigates perceived resilience as a mediator between these two forms of narcissism and funding success of new ventures, and flattery as a moderator of the relationship between grandiose and vulnerable narcissism and perceived resilience. Together, this study advances understanding of the direct and indirect pathways through which grandiose and vulnerable narcissism shape new venture funding success in resource-constrained entrepreneurial environments.
Data were collected from 298 entrepreneurs seeking funding from 112 savings and credit cooperatives (SACCOs) in Kathmandu, Nepal. SACCOs are community-based financial institutions that provide savings opportunities and microloans to small and micro-scale entrepreneurs. SACCOs’ emphasis on interpersonal evaluations makes them well-suited for this study. Structural equation modeling was used to test the proposed relationships, with analyses conducted in Stata 14.
The results reveal a striking contrast between the influence of grandiose and vulnerable narcissism on new venture funding success, with grandiose narcissism enhancing outcomes, while vulnerable narcissism undermines them. Notably, perceived resilience emerges as a strong positive driver of new venture funding success and serves as a significant mediator, amplifying the influence of both types of narcissism on new venture funding success. In addition, flattery plays a complex moderating role: it positively moderates the effect of grandiose narcissism on perceived resilience but negatively moderates this effect for vulnerable narcissism.
This study contributes to the field of entrepreneurship by explaining the contradictory influences of narcissism on funding success. Furthermore, this study explains the influence of contextual variables on this relationship.
