Courting the sharks: The effects of CEO narcissistic admiration and rivalry on new venture funding

Abstract

We draw from the social psychology literature to introduce an alternative conceptualization of executive narcissism—narcissistic admiration and rivalry. In the context of CEOs pitching to investors, we theorize how narcissistic CEOs may use distinct behavioral strategies to pursue status, thereby shaping investor sentiment and ultimately affecting investors’ funding decisions. Using Shark Tank data, we find evidence that narcissistic admiration and rivalry are associated with opposing patterns in new venture funding, as shaped by investor sentiment. Specifically, CEO narcissistic admiration is positively associated with new venture funding by increasing investor sentiment, whereas CEO narcissistic rivalry is negatively associated with new venture funding by decreasing investor sentiment. These results highlight the need to separate narcissistic admiration and rivalry in executive narcissism research and illustrate the underlying mechanisms through which executive narcissism shapes organizational outcomes. Overall, this study provides new insights into two pathways of executive narcissism and offers evidence consistent with the idea that executive narcissism matters in entrepreneurial contexts