Abstract
CEO narcissism and power significantly influence firm performance. However, little is investigated how CEO narcissism interacts with power and influences the likelihood of product recalls that often significantly hurt firm performance. This paper investigates how CEO narcissism affects the likelihood of product recalls depending on the type of power they have, either structural or ownership power. Further, the role of the age of narcissistic CEOs on the product recall likelihood is examined. Using product recall data in the consumer-packaged goods (CPG) from 2006 to 2013, we found different moderating effects of structural and ownership power, as well as CEO age on the relationship between CEO narcissism and the likelihood of product recalls. Finally, the results emphasize that young narcissistic CEOs are more likely to experience product recalls than old narcissistic CEOs. Practical and theoretical implications are discussed.
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