Grandiose narcissism and entrepreneurship: a conceptual framework and future research agenda

Abstract

Purpose

This paper aims to explore how narcissistic traits and personality influence entrepreneurial behaviour. In entrepreneurship and psychology, research has shown that narcissism and personality have “productive” and “unproductive” influences on entrepreneurial activities. Therefore, this paper explores the entrepreneur from a social constructionist perspective by using the narrative from the emerging literature. The narrative focus is on narcissism, entrepreneurial personality and the intention to start a new venture, focusing on activities in the early stages of entrepreneurship.

Design/methodology/approach

This study draws upon the narcissism theory and the big five personality models. Using the conceptual model, the authors identify commonalities with entrepreneurial activities such as product and service development, market competitive strategies, marketing, networking, performance management, learning from failure and fund-raising activities. The conceptual framework demonstrates a connection between narcissism, the big five personality and entrepreneurial activities.

Findings

This study proposes an innovative conceptual framework for productive entrepreneurial behaviour. Productive traits of the grandiose narcissist are extraversion and openness to experience, which may have positive influences on the entrepreneurship process. Traits such as assertiveness, overconfidence and intellect have been found to be instrumental in resource acquisition activities. Findings also suggest that the grandiose narcissist will be high in openness to experience (intellect) and extraversion (excitement and social networking). The narcissist is most likely to choose an internal source of funding to protect their fragile ego and maintain control over their entities. Those with high extraversion and openness to experience may be more open to pursuing external sources of funding, as they are more inclined to have social networks and enjoy the external process. Though the study focuses on the “dark trait productivity” of narcissism, it is important not to overlook the damaging side of the narcissistic entrepreneur – “dark trait unproductivity”. The study also discusses the unproductive traits of narcissistic entrepreneurs, such as constantly chasing goals, deflecting and blaming the environment and others for failure, embarking on risky financial decisions, a lack of empathy in team dynamics and poor stakeholder management.

Originality/value

The influence of narcissism on entrepreneurial activities and its impact have gained traction among academia and practitioners. Yet, this is an insufficiently understood area of study and has not been explored in depth. Previous research has focused chiefly on entrepreneurial intentions in the context of entrepreneurship, and what influences the choice to start a business. There is limited research that bridges the gap between entrepreneurial finance and psychology–narcissism personality.