I recently found an interesting article on the online Journal of product innovation management. "Will Self‐Love Take a Fall? Effects of Top Executives' Positive Self‐Regard on Firm Innovativeness" authored by Dr Ruth Stock, Dr Matthias Groß and Katherine R Xin.
The article mainly focuses on top executives personalities and self regard and how that affects a firm performance and innovativeness. They build their study on the upper echelon theory which is a theory that states that organization outcomes are somewhat predicted by top management background characteristics. The authors completed a questionnaire that involved 214 executives participating in an MBA program and 647 of their subordinates. They then match each executive with their subordinates. They used a scale from 1 to 7 to rate executive personality traits and completed descriptive statistics to evaluate results.It was found that selfism and overconfidence had a negative correlation with the top executive innovative behavior whereas the top executive innovative behavior is positively correlated with the firm's product program newness. Although top executives need to have some type of self regard and confidence in order to be able to make decisions it seems that being overconfident will negatively impact their innovation.This actually brings up an interesting point related to the hiring process of CEOs and the need for the stakeholders involved in the hiring process to possibly ask candidates to undergo personality tests. The interplay of psychological and demographic characteristics plays an important role in predicting executives behavior. Below is the link to the article.https://onlinelibrary-wiley-com.huaryu.kl.oakland.edu/doi/full/10.1111/jpim.12443Thank you
I think that the article provides great insights for any person that is either a top executive or wanting to become a top executive. There are a lot of great points regarding how an executive's personality plus their skills/abilities can drive or deter innovation. I would agree that a personality test is a great predictor of an executive's behavior. However, based on the Practitioner Points, it also seems that it's imperative that executives undergo training and coaching to prevent them from falling into selfism or overconfidence to maintain positive product innovation.
I really enjoy reading Mark's insights of being a CEO and how one should never be comfortable in a CEO position. I would agree with his opinion. I think that once a person feels comfortable, they make their company vulnerable to competitors stealing market share or getting a leg up on the competition in terms of innovative products.
Melissa ThanyakarnMBA CandidateOakland University