Personality traits in the top management team. The role of Narcissism, Overconfidence and Extraversion

Table of Contents

1 Introduction

1.1 Motivation and Problem identification

1.2 Methodological approach

2 Theoretical Background

2.1 Definition Narcissism

2.1.1 Impacts of grandiose vs. vulnerable Narcissism

2.2 Definition Overconfidence

2.2.1 Impacts of CEO Overconfidence

2.3 Definition Extraversion

2.3.1 Impacts of Extraversion in leadership

3 Theoretical models

3.1 Personality trait models

4 Empirical research designs and results

4.1 Measuring narcissism

4.2 Measurement designs for CEO overconfidence

4.3 Measurement options and contradictions in extraversion

4.4 The relationship of narcissism, overconfidence and extraversion

5 Personality traits in the Top Management Team

5.1 TMT relationships with the CEO

5.2 Measurement methods and limitations for the TMT

6 Contribution and limitations

7 Summary and Conclusion

8 List of References

Appendix-A-Figures

Appendix-B-Tables

Appendix-C- Literature review

Research Objective and Key Themes

This master thesis investigates the gap in empirical research regarding personality traits—specifically narcissism, overconfidence, and extraversion—within the Top Management Team (TMT), arguing that most current studies focus disproportionately on the individual CEO rather than the broader leadership team.

• Theoretical analysis of personality traits in executive leadership.
• Critical review of measurement methods (self-report versus unobtrusive indicators).
• Evaluation of the interplay between CEO personality and the Top Management Team.
• Investigation of the moderating role of the TMT in firm performance.
• Synthesis of research limitations and implications for future personality studies.

Excerpt from the Book

Chapter Summaries

1 Introduction: Introduces the rising demands on leadership and identifies the critical research gap concerning personality traits within the Top Management Team compared to the individual CEO focus.

2 Theoretical Background: Defines the core concepts of narcissism, overconfidence, and extraversion, exploring their origins, definitions, and impacts on organizational behavior.

3 Theoretical models: Reviews established personality frameworks including the P-E-N System, the Big Five Model, and the HEXACO model as a foundation for empirical research.

4 Empirical research designs and results: Critically evaluates the techniques used to measure personality traits, highlighting the shift from self-report measures to unobtrusive, outsider-perspective indicators.

5 Personality traits in the Top Management Team: Examines the interplay between CEO personality and other TMT members, emphasizing the board as an intervening mechanism for firm outcomes.

6 Contribution and limitations: Summarizes the thesis' academic contributions and acknowledges the constraints regarding sample representativeness and methodological challenges.

7 Summary and Conclusion: Provides a final synthesis of the key findings, reiterating that future research must view the board as a collaborative social process rather than focusing solely on the CEO.

Keywords

Narcissism, Overconfidence, Extraversion, Top Management Team, TMT, CEO, Leadership Research, Personality Traits, Firm Performance, Methodology, Self-report Measures, Unobtrusive Indicators, Corporate Governance, Upper Echelons Theory, Behavioral Economics.

Frequently Asked Questions

What is the core focus of this master thesis?

The thesis focuses on the role of narcissism, overconfidence, and extraversion among leaders and argues for a shift in research focus from individual CEOs to the entire Top Management Team.

Which central personality traits are being analyzed?

The research analyzes three specific traits: narcissism, overconfidence, and extraversion, examining how each impacts leadership and organizational outcomes.

What is the primary research question?

The central question is: "Why is research on the personality attributes narcissism, overconfidence and extraversion restrained in the top management team?"

How does the author approach the scientific methodology?

The author conducts an extensive literature review of 80 scientific journals to evaluate existing research designs, comparing traditional self-report methods with emerging unobtrusive, indicator-based techniques.

What is explored in the main body of the work?

The main body covers the theoretical definitions of the chosen traits, an analysis of measurement designs, and a deep dive into the complex psychological interplay between the CEO and the broader TMT.

Which keywords best describe the work?

Key terms include narcissism, overconfidence, extraversion, Top Management Team (TMT), Upper Echelons Theory, and firm performance measurement.

Why is the TMT often overlooked in traditional leadership research?

Traditional research often consolidates the leadership category into the single figure of the CEO, which misses the complex intervening mechanisms and power dynamics of the rest of the board.

What does the author conclude regarding the measurement of personality traits?

The thesis concludes that while self-report measures have been standard, they are prone to social desirability bias, making unobtrusive indicators an essential, though currently limited, alternative for future research.