Overconfident executives: do they wreak havoc or inspire the troops?

Q2 Business, Management and Accounting

Journal of Business Strategy Pub Date : 2023-04-13 DOI:10.1108/jbs-11-2022-0193

S. Schneck, Julia Hautz

{"title":"Overconfident executives: do they wreak havoc or inspire the troops?","authors":"S. Schneck, Julia Hautz","doi":"10.1108/jbs-11-2022-0193","DOIUrl":null,"url":null,"abstract":"\nPurpose\nThis study aims to explain the cognitive bias of overconfidence and portray the different ways in which overconfident top managers may affect firm outcomes. This paper outlines their opportunities and risks and how these managers are surrounded by contextual factors.\n\n\nDesign/methodology/approach\nThis study draws on a systematic overview of the current literature on senior executives' overconfidence and empirical studies investigating its impact on strategic outcomes.\n\n\nFindings\nThis study identifies the opportunities and risks of overconfident top managers in firms and considers the contextual factors that influence firm outcomes. The results provide three important managerial implications for interactions with overly confident top managers.\n\n\nPractical implications\nThese findings help us understand top managers' overconfidence. Organizations receive guidance on how to constrain inappropriately confident top managers who are detrimental to their businesses.\n\n\nOriginality/value\nThis study contributes to a better understanding of overconfidence among top managers, illustrates associated opportunities and risks and provides recommendations for controlling and dealing with top managers characterized by this cognitive bias.\n","PeriodicalId":55881,"journal":{"name":"Journal of Business Strategy","volume":" ","pages":""},"PeriodicalIF":0.0000,"publicationDate":"2023-04-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Journal of Business Strategy","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1108/jbs-11-2022-0193","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"Business, Management and Accounting","Score":null,"Total":0}

引用次数: 0

Abstract

Purpose This study aims to explain the cognitive bias of overconfidence and portray the different ways in which overconfident top managers may affect firm outcomes. This paper outlines their opportunities and risks and how these managers are surrounded by contextual factors. Design/methodology/approach This study draws on a systematic overview of the current literature on senior executives' overconfidence and empirical studies investigating its impact on strategic outcomes. Findings This study identifies the opportunities and risks of overconfident top managers in firms and considers the contextual factors that influence firm outcomes. The results provide three important managerial implications for interactions with overly confident top managers. Practical implications These findings help us understand top managers' overconfidence. Organizations receive guidance on how to constrain inappropriately confident top managers who are detrimental to their businesses. Originality/value This study contributes to a better understanding of overconfidence among top managers, illustrates associated opportunities and risks and provides recommendations for controlling and dealing with top managers characterized by this cognitive bias.

查看原文本刊更多论文

过于自信的高管们：他们是制造混乱还是激励军队？

目的本研究旨在解释过度自信的认知偏差，并描绘过度自信的高层管理者可能影响公司结果的不同方式。本文概述了他们的机会和风险，以及这些管理者是如何被上下文因素包围的。设计/方法/方法本研究对当前有关高管过度自信的文献进行了系统概述，并对其对战略成果的影响进行了实证研究。本研究确定了公司中过度自信的高层管理人员的机会和风险，并考虑了影响公司结果的背景因素。研究结果为与过度自信的高层管理者互动提供了三个重要的管理启示。这些发现有助于我们理解高层管理者的过度自信。组织接受关于如何约束对其业务有害的不适当自信的高层管理人员的指导。原创性/价值本研究有助于更好地理解高层管理者的过度自信，阐明了相关的机会和风险，并为控制和处理具有这种认知偏见的高层管理者提供了建议。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

求助全文

约1分钟内获得全文求助全文

来源期刊

Journal of Business Strategy Business, Management and Accounting-Management Information Systems

CiteScore

4.50

自引率

0.00%

发文量

期刊介绍： The Journal of Business Strategy publishes articles with a practical focus designed to help readers develop successful business strategies. Articles should say something new or different and may propose a unique perspective. They should not offer prescriptions to CEOs on how to manage, but rather be directed toward middle and senior managers at companies of all sizes and types, as well as consultants and academics who want to think about their businesses in new ways. Coverage: As one of the few journals dedicated to business strategy, JBS defines strategy in the broadest sense and thus covers topics as diverse as marketing strategy, innovation, developments in the global economy, mergers & acquisition integration and human resources. We have a penchant for substantive, provocative and well-written articles. We also like to break the mould and include articles on topics readers are unlikely to find in other business publications.