Faculty research at Ivy
New research from two Ivy College of Business assistant professors sheds light on how different types of CEO narcissism can influence investor decisions — especially in high-stakes pitch environments like the ABC television program Shark Tank. Rather than treating narcissism as a single trait, the study breaks it down into two distinct styles: narcissistic admiration and narcissistic rivalry.
- Narcissistic admiration involves charm, confidence, and a desire to be liked and admired.
- Narcissistic rivalry, on the other hand, is marked by arrogance, competitiveness, and a tendency to put others down.
Using data from Shark Tank, researchers found that these two styles have opposite effects on investor sentiment and funding outcomes:
- CEOs who display narcissistic admiration tend to win over investors, boosting their chances of securing funding.
- CEOs who show narcissistic rivalry often turn investors off, reducing their likelihood of receiving support.
The research was published in the article, “Courting the Sharks: The Influence of CEO Narcissistic Admiration and Rivalry on New Venture Funding,” in the journal Organization Science.
“I expected narcissism overall to hurt entrepreneurs, but we found a more nuanced story. Investors actually responded positively to the admiration side of narcissism. Confidence, bold vision, and charm can help secure funding.”
— Ileana Maldonado Bautista
Paul Sanchez-Ruiz, assistant professor of management and entrepreneurship and co-author, has always been interested in how entrepreneurs mobilize resources in environments where they don’t fully control them.
“Even founder CEOs, who look powerful on the surface, are highly dependent on others, such as investors,” he said. “Narcissism is an important trait in this context because it shapes how CEOs try to gain attention and support. What intrigued us was that narcissism isn’t one-dimensional. Instead, we wanted to unpack its two more parsimonious dimensions. Admiration and rivalry represent two distinct ways in which CEOs present themselves to the outside world. We wanted to see how those differences matter for resource mobilization and constraint.”
Conducting the research was challenging, said co-author Ileana Maldonado Bautista, assistant professor of management and entrepreneurship.
“I expected narcissism overall to hurt entrepreneurs, but we found a more nuanced story,” she said. “Investors actually responded positively to the admiration side of narcissism. Confidence, bold vision, and charm can help secure funding. However, the rivalry side, when entrepreneurs belittled others or came across as combative, hurt their chances. This was surprising because it showed that investors are not rejecting or rewarding narcissism as a whole but rather reacting to how entrepreneurs manage their interactions with them as stakeholders. It underscored how subtle shifts in behavior can build trust with stakeholders or erode it.”
The takeaways:
- Not all narcissism is created equal. Understanding the difference between admiration and rivalry helps explain how executive personalities can shape business success. This study provides fresh insights into the psychology behind entrepreneurial pitches and why some leaders succeed while others fail.
- Entrepreneurs, like CEOs, are never completely unconstrained. Their personalities and communication styles play a critical role in how they mobilize resources. Narcissistic admiration can generate excitement and help build coalitions, but narcissistic rivalry can backfire, creating new constraints and eroding support. Entrepreneurs need to recognize that how they pursue visibility and influence will shape the resources available to them.
- For students and emerging entrepreneurs, the takeaway is that ambition and confidence can be valuable, but they need to be channeled constructively. For business leaders and CEOs, the key lesson is that narcissism has two sides: admiration can be a resource-mobilizing force, while rivalry often comes at a hidden cost. And for boards or those hiring leaders, it’s important to look beneath the surface — a leader’s drive for admiration versus rivalry can have very different implications for an organization’s ability to secure resources and thrive.
