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      Big egos can be green: A study of CEO hubris and environmental innovation

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      Full paper incl. title page.docx (158.2Kb)
      Date
      2017-11-15
      Author
      Arena, C
      Michelon, G
      Trojanowski, G
      Date issued
      2017-11-15
      Journal
      British Journal of Management
      Type
      Article
      Language
      en
      Publisher
      Wiley for British Academy of Management
      Rights
      © 2017 British Academy of Management
      Embargo
      2019-11-15
      Reason for embargo
      Publisher policy
      Abstract
      This paper examines whether and to what extent CEO personal traits (hubris, in particular) affect firm environmental innovation. Using the overarching theoretical framework of upper-echelons theory, the paper builds on the insights from corporate strategy, innovation, and corporate social responsibility literatures. We also examine the moderating role of firm-specific features (e.g. organizational slack) and the external environment (e.g. market uncertainty) in this context. Based on a sample of UK companies operating in sensitive industries, we find that CEO hubris facilitates the engagement in green innovative projects. We also find that CEO hubris does not have a uniform effect: its effect on environmental innovation increases with the organizational slack, but weakens with the extent of environmental uncertainty. Our findings suggest that availability of resources per se is not enough to produce environmental innovation. Instead, it requires a stable external environment that enables the CEO with a hubristic personality to make a correct use of them.
      Description
      This is the author accepted manuscript. The final version is available from Wiley via the DOI in this record.
      Citation
      Published online 15 November 2017
      DOI
      https://doi.org/10.1111/1467-8551.12250
      URI
      http://hdl.handle.net/10871/28954
      ISSN
      1045-3172
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