TY - JOUR

T1 - Vice-chancellor narcissism and university performance

AU - Khoo, Shee Yee

AU - Perotti, Pietro

AU - Verousis, Thanos

AU - Watermeyer, Richard

N1 - 18 months embargo

PY - 2024/1

Y1 - 2024/1

N2 - Universities hold a prominent role in knowledge creation through research and education. In this study, we examine the effects of VC narcissism on university performance. We measure VC narcissism based on the size of the signature, in line with a methodological approach which has been widely used in the recent literature and repeatedly validated in laboratory experiments. We exploit a quasi-natural experiment of VC changes and employ a Difference-in-Difference research design, which alleviates concerns related to endogeneity and identification bias. We show that the appointment of a highly narcissistic VC leads to an overall deterioration in research and teaching performance and concomitantly league table performance. We further identify excessive financial risk taking and empire-building as possible mechanisms explaining the main results and provide evidence on the moderating role of university governance. Our findings are consistent with the view that narcissism is one of the most prominent traits of destructive leadership; they also have practical implications for leadership recruitment and the monitoring of leadership practices in the higher education sector. The results of this study extend prior research in several ways. Extant literature on executive leadership and narcissism yields inconclusive findings; this literature has mainly focused on for-profit organisations and has not considered universities. In addition, prior research in higher education on the determinants of university performance has not yet examined the role of leadership personality traits.

AB - Universities hold a prominent role in knowledge creation through research and education. In this study, we examine the effects of VC narcissism on university performance. We measure VC narcissism based on the size of the signature, in line with a methodological approach which has been widely used in the recent literature and repeatedly validated in laboratory experiments. We exploit a quasi-natural experiment of VC changes and employ a Difference-in-Difference research design, which alleviates concerns related to endogeneity and identification bias. We show that the appointment of a highly narcissistic VC leads to an overall deterioration in research and teaching performance and concomitantly league table performance. We further identify excessive financial risk taking and empire-building as possible mechanisms explaining the main results and provide evidence on the moderating role of university governance. Our findings are consistent with the view that narcissism is one of the most prominent traits of destructive leadership; they also have practical implications for leadership recruitment and the monitoring of leadership practices in the higher education sector. The results of this study extend prior research in several ways. Extant literature on executive leadership and narcissism yields inconclusive findings; this literature has mainly focused on for-profit organisations and has not considered universities. In addition, prior research in higher education on the determinants of university performance has not yet examined the role of leadership personality traits.

U2 - 10.1016/j.respol.2023.104901

DO - 10.1016/j.respol.2023.104901

M3 - Article

VL - 53

JO - Research Policy

JF - Research Policy

SN - 0048-7333

IS - 1

M1 - 104901

ER -