IIM K hosted its ninth research seminar on November 2, 2023, for the year 2023-24. It was conducted by Prof. STEPHEN ZHANG, Professor of Entrepreneurship and Innovation, University of Adelaide, Australia. The topic was Boon or bane having overconfident founder-CEOs for firm performance? The role of firm dynamic capability and CEO risk-taking
The abstract of the talk is given below.
The literature examining biases in entrepreneurs and upper echelons presents a notable tension due to conflicting evidence concerning the impact of overconfidence on firm performance. To address this issue, we conducted a comprehensive multi-wave multi-informant study focusing on small and medium-sized enterprises (SMEs) in Malaysia. Our findings shed light on the intricate association between founder-CEO overconfidence and firm performance, specifically highlighting the mediating role of CEO risk taking, contingent upon the firm’s dynamic capability. This research holds significant implications for the study of bias in entrepreneurship and upper echelons literature, underscoring the advantages of adopting a leader-organization fit perspective.