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Exploring the Moderating Effect of Psychological Capital on the Relationship

between Narcissism and Psychological Well-being

Article  in  Procedia - Social and Behavioral Sciences · September 2014

DOI: 10.1016/j.sbspro.2014.09.130

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Procedia - Social and Behavioral Sciences 150 (2014) 1148 – 1156

10th International Strategic Management Conference

Exploring the moderating effect of psychological capital on

the relationship between narcissism and psychological well-
being
Hakan Erkutlu
a
Nevsehir University, Nevsehir, 50300, Turkey

Abstract

The purpose of this paper is to examine the relationship between narcissism and psychological well-being and the
moderating effect of psychological capital on that relationship. Data were collected from 17 Universities in Turkey.
The sample included 793 faculty members along with their faculties’ deans. The obtained data from the
questionnaires are analyzed through the SPSS statistical packaged software. Moderated hierarchical regression was
used to examine the moderating role of psychological capital on the narcissism and psychological well-being
relationship. The results show that narcissism is negatively and significantly correlated with employees’
psychological well-being. In addition, the result of the hierarchical multiple regression analysis supports the
moderating effect of psychological capital with regard to the relationship between narcissism and psychological well-
being.

©©2014
2014 Published
The by Elsevier
Authors. Published Ltd. Selection
by Elsevier Ltd. This and/or peer-review
is an open access articleunder
underresponsibility of the
the CC BY-NC-ND 10th
license
(http://creativecommons.org/licenses/by-nc-nd/3.0/).
International Strategic Management Conference
Peer-review under responsibility of the International Strategic Management Conference.

Keywords: Narcissism, Psychological well-being, Psychological capital

Corresponding author. Tel. + 90-383-228-1110 fax. +90-384-225-2010
E-mail address: erkutlu@nevsehir.edu.tr

1877-0428 © 2014 The Authors. Published by Elsevier Ltd. This is an open access article under the CC BY-NC-ND license
(http://creativecommons.org/licenses/by-nc-nd/3.0/).
Peer-review under responsibility of the International Strategic Management Conference.
doi:10.1016/j.sbspro.2014.09.130
 Hakan Erkutlu / Procedia - Social and Behavioral Sciences 150 (2014) 1148 – 1156 1149

1. Introduction

The prevalence of psychological well-being in higher education is increasing (Chong and Kong, 2012;
Aelterman, Engels, Petegem, and Verhaeghe, 2007). Since psychological well-being has major
significance for both employees and organizations, it is important to continue searching for mechanisms
that increase its positive effects on lecturers’ physical and psychological health, emotional stability and
sense of adequacy. This, in turn, will positively affect the working relationship with other colleagues and,
if continued, the end results could promote the quality of teaching.

Several studies have found that leaders’ behavior affects employees’ well-being. Gilbreath and Benson
(2004) investigated the effect of supervisory behavior on employee well-being. Findings indicated that
positive supervisory behavior (e.g., allowing more employee control, communicating and organizing
well, considering employees and their well-being) made a statistically significant contribution to
employee well-being over and above the effects of age, lifestyle, social support from coworkers and at
home, and stressful work and life events. Van Dierendonck et al. (2004) investigated a similar
conceptualization of leader behavior and the effects of this on both job-related affective well-being and
context-free psychological well-being, suggesting that high-quality leadership behavior was associated
with increased employee well-being.

The independent variable of the study is narcissism. It refers to a personality trait encompassing
grandiosity, arrogance, self-absorption, entitlement, fragile self-esteem, and hostility (Rosenthal and
Pittinsky, 2006). Narcissistic leaders have grandiose belief systems and leadership styles, and are
generally motivated by their needs for power and admiration rather than empathetic concern for the
constituents and institutions they lead. Leaders with a narcissistic personality are expected to lower
employees’ psychological well-being. Narcissistic leaders are more likely to respond to partner negative
behaviors in ways that are destructive rather than constructive for the relationship (Campbell and Foster,
2002). Narcissism also predicts lower levels of forgiveness in close relationships (Exline, Baumeister,
Bushman, Campbell and Finkel, 2004) and aggression and violence against individuals (e.g., Bushman
and Baumeister, 1998) and groups (Gaertner, Iuzzini and O'Mara, 2008), which in turn, leads to lower
levels of psychological well-being.

The purpose of this study is to examine how the leader’s narcissistic personality affects employees’
psychological well-being. Further, the study concentrated on identifying individual difference variables
such as psychological capital by which narcissism is related to psychological well-being. In this context,
the study begins by a literature review of narcissism, psychological well-being and psychological capital,
and then will go on to development of hypotheses. Research methodology, analyses results and research
model will take place at second section. The results of the analyses will be discussed and recommendation
will be provided for managers and academician at the last section.
1150 Hakan Erkutlu / Procedia - Social and Behavioral Sciences 150 (2014) 1148 – 1156

2. Literature Review And Hypotheses

2.1. Narcissism and psychological well-being

Penney and Spector (2002) found that leader’s narcissistic personality was positively related to
employees’ deviant behaviors. Because narcissists are coercive (Baumeister, Catanese, and Wallace,
2002), and may be motivated to derogate others (Morf and Rhodewalt, 2001), one would expect
narcissists to be more predisposed to engage in behaviors that ultimately harm the organization and its
members. Moreover, research suggests that narcissists are likely to engage in aggressive behavior,
especially when their self-concept is threatened (Stucke and Sporer, 2002). Bushman and Baumeister
(1998) found that narcissists were more likely to engage in aggressive behavior because they are
hypervigilant to perceived threats. Narcissists may be predisposed to engage in aggressive and other
deviant behavior because they are predisposed to see their work environment in negative, threatening
ways. Finally, Soyer et al. (1999) found that narcissists were more comfortable with ethically
questionable sales behaviors, suggesting that narcissists are less bound to organizational rules of
propriety. Putting these perspectives together, narcissism may be linked to deviance through both a
perceptual and behavioral process: narcissists may be predisposed to perceive threats in the workplace,
and they may be more likely to respond aggressively to those threats that are perceived. On the other
hand, deviant behavior threatens the overall well-being of employees (Pulich and Tourigny, 2004).
Moreover, narcissistic leader’s personality traits such as grandiosity, arrogance, fragile self-esteem, and
hostility are all likely to lead to lower employee psychological well-being (Rosenthal and Pittinsky,
2006). Thus, we expect leader’s narcissistic personality to be negatively related to employees’
psychological well-being.

Hypothesis 1: Narcissism is negatively related to employees’ psychological well-being.

2.2. Moderating effect of psychological capital

Psychological capital can be defined as an individual’s positive psychological state of development

that is characterized by: (1) having confidence (self-efficacy) to take on and put in the necessary effort to
succeed at challenging tasks; (2) making a positive reference (optimism) about succeeding now and in the
future; (3) persevering toward goals and, when necessary, redirecting paths to goals (hope) in order to
succeed; and (4) when beset by problems and adversity, sustaining and bouncing back and even beyond
(resilience) to attain success (Luthans, Youssef, and Avolio, 2007).

Psychological capital is proposed to be positively related to employees’ well-being. In a review of

resource theories in psychology, Hobfoll (2002:307) defines resources as “those entities that either are
centrally valued in their own right (e.g., self-esteem, close attachments, health, and inner peace) or act as
a means to obtain centrally valued ends (e.g., money, social support, and credit).” Along with attributes
and skills, Lyubomirsky et al. (2005) propose that such resources help people thrive and succeed at work,
in relationships and, with health. Furthermore, experimental studies have shown that those induced into a
positive state report higher self-perceptions such as efficacy (Baron, 1990; Schuettler and Kiviniemi,
2006), have optimistic expectations (Brown, 1984), and set higher goals for themselves (Baron, 1990).
Conceptualizing positive psychological capacities (e.g., efficacy and optimism) as resources from which
one can draw seems an important theoretical explanation of the mechanism by which such positive
 Hakan Erkutlu / Procedia - Social and Behavioral Sciences 150 (2014) 1148 – 1156 1151

capacities affect one’s well-being (Avey, Luthans, Smith and Palmer, 2010) . Researchers in occupational
health and health psychology have demonstrated that well-being is impacted by: hope (Snyder, Lehman,
Kluck, and Monsson, 2006), resiliency (Keyes, 2007), self-efficacy (Meier, Semmer, Elfering, and
Jacobshagen, 2008), and optimism (Carver et al., 2005).

Narcissistic leaders have fantasies of power and success, an exaggerated, grandiose sense of self-
importance, and little empathy or concern for the feelings and needs of others (Yukl, 2002). Such innate
characteristics lead to the exploitation and manipulation of others for the primary purpose of indulging a
narcissistic leader’s desire for personal enhancement. They expect special favors without feeling any need
to reciprocate, oversimplify relationships and motives and have extremely bipolar worldviews; seeing
things as either extremely good or extremely bad and see others around them as either loyal supporters or
mortal enemies (Yukl, 2002). Those characteristics of narcissistic leaders are likely lead to higher levels
of employee job stress and lower levels of well-being.

We expect that employees with high psychological capital perceive the negative effects of narcissistic
leader behavior such as higher job stress, lack of empathy, little concern for the feelings and needs of
employees less than employees with low psychological capital. Psychological capital appears to provide
individuals with the mental hardiness to effectively cope with job-related demands (Baron, Franklin and
Hmieleski, 2013). For example, individuals high in self-efficacy believe that they can achieve whatever
they set out to accomplish—that they can, in essence, “get the job done.” This may help to reduce
experienced stress, which often involves cognitions of being unable to cope or being overwhelmed
(Schaubroeck and Merritt, 1997). Similarly, those high in optimism believe that they will experience
positive outcomes in almost any situation (Hmieleski and Baron, 2009), and this, too, may help to
mitigate stress. Persons high in hope have the ability to imagine multiple pathways through which they
can overcome challenges, thus reducing the likelihood of becoming overwhelmed by work-related
stressors (Snyder, Sympson, and Ybasco, 1996). Finally, persons high in resilience have faced difficult
situations in the past and, based on their experience, believe they can overcome similar obstacles in the
present and future without feeling helpless and becoming stressed (Tugade, Fredrickson, and Barrett,
2004). On the other hand, employees with low psychological capital are likely to exposed to the
detrimental effects of leader’s narcissistic personality more because of their lower levels of hope,
optimism, self-efficacy and resilience Therefore, both theory and empirical findings combine to suggest
that psychological capital can provide an effective buffer against high levels of leader’s narcissistic
personality. Accordingly, we propose that:

Hypothesis 2: Psychological capital moderates the negative relationship between narcissism and
employee well-being in such a way that the relationship is weaker when psychological capital is high
than it is low.
1152 Hakan Erkutlu / Procedia - Social and Behavioral Sciences 150 (2014) 1148 – 1156

3. Methodology

3.1. Research Goal

In this study, we aim to identify the moderating effect of psychological capital on the relationship
between narcissism and psychological well-being. To test the hypotheses, a field survey using
questionnaires was conducted.

3.2. Sample and Data Collection

The sample of this study included 793 faculty members along with their faculties’ deans from 17
universities in Turkey. These universities were randomly selected from a list of 175 universities in the
country (The Council of Higher Education Turkey, 2013). Data obtained from the questionnaires were
analyzed through the SPSS statistical packet program and three proposed relations were tested through
regression analyses.

3.3. Analyses and Results

We assessed narcissism by using the Narcissistic Personality Inventory (NPI-16; Ames, Rose,
Anderson, & Cameron, 2006; α = .89). This is a 16-item scale. It contains 16 pairs of items, each
consisting of two conflicting proposals between which the participant must choose (e.g., ‘‘I like to be the
center of the attention” vs. ‘‘I prefer to blend in with the crowd”). Total scores range from 0 to 16.
Cronbach alpha for this scale in the study was .86. Psychological well-being was measured by the Ryff’s
(1989) Psychological Well-Being measure-short form (17-item). Sample items included, “I have the sense
that I have developed a lot as a person over time” and “In general, I feel confident and positive about
myself”. Responses were made on a five-point scale from 1 (‘strongly agree’) to 5 (‘strongly disagree’).
Cronbach alpha for this scale in the study was .89. Psychological capital was measured by the 24-item
PsyCap questionnaire or PCQ (Luthans, Avolio, et al., 2007). Sample items included the followings: “I
feel confident helping to set targets/goals in my work area”, “If I should find myself in a jam at work, I
could think of many ways to get out of it”, “I always look on the bright side of things regarding my job”.
All the items in PCQ are rated on a 6-point Likert scale ranging from 1 ‘strongly disagree’ to 6 ‘strongly
agree’. Cronbach alpha for this scale in the study was .93.
The demographic variables of gender, age and job tenure, which have been related to employee well-
being in past research (Wright and Bonett, 1997), were controlled.
Table 1 shows the means, standard deviations and correlations for the study variables.
 Hakan Erkutlu / Procedia - Social and Behavioral Sciences 150 (2014) 1148 – 1156 1153

Table 1 Descriptive Statistics and Correlations *

Variables Mean s.d. 1 2 3 4 5

1. Age 32.93 2.23
2. Gender 0.53 0.47 .06
3. Job tenure 9.66 2.13 .26** .03
4. Narcissistic personality 3.29 0.69 .10 .09 .07
5. Psychological well-being 3.66 0.93 .16* .07 .15* -.33***
6. Psychological capital 3.23 1.19 .13* .03 .20** -.29** -.36***
* p <.05, ** p <.01, *** p <.001.

Hypothesis 1 was tested with hierarchical regression analysis (Table 2). In step 1, the control
variables were entered and in step 2, narcissistic personality. As can be seen in the section of the table
showing the values yielded by step 2, narcissistic personality was significantly, negatively related to
psychological well-being (β = - .31, p < .001), a finding that supports Hypothesis 1.

Table 2 Results of hierarchical regression analysis for psychological well-being *

Steps and Predictor Variables Models

1 2
Step 1
Age .15* .13*
Gender .06 .05
Job tenure .14* .12*
Step 2
Narcissistic personality -.31***

F(df) 2.79** 3.93***

R2 .21** .23**
Adjusted R2 .17** .19**

* p <.05, ** p <.01, *** p <.001.

The hypothesis 2 in the study was tested by using moderated hierarchical regression, according to the
procedure delineated in Cohen and Cohen (1983). The significance of interaction effects was assessed
after controlling for all main effects. In the models, gender, age and job tenure were entered first as
control variables; narcissistic personality, predictor variable, was entered in the second step; the
moderator variable, psychological capital, was entered in the third step; and the interaction terms, in the
fourth step. In order to avoid multicollinearity problems, the predictor and moderator variables were
centered and the standardized scores were used in the regression analysis (Aiken and West, 1991).
1154 Hakan Erkutlu / Procedia - Social and Behavioral Sciences 150 (2014) 1148 – 1156

Table 3 Results of hierarchical moderated regression analysis for psychological capital on psychological well-being*

Steps and Predictor Variables Models

1 2 3 4
Step 1
Age .15* .13* .12* .09
Gender .06 .05 .03 .02
Job tenure .14* .12* .09 .07
Step 2
Narcissistic personality (NP) -.31*** -.30*** -.28**
Step3
Psychological capital (PC) -.33*** -.31***
Step4
NP x PC -.23**

R2 .21** .23** .27** .31***

Change in R2 .12 .09 .06 .03
F 2.79** 3.93*** 4.13*** 4.66***

* p <.05, ** p <.01, *** p <.001.

Hypothesis 2, which states that psychological capital moderates the relationship between narcissistic
personality and psychological well-being, received strong support (see Table 3, model 4). The interaction
effect for narcissistic personality and psychological capital was significant for psychological well-being
(β = - .23, p < .01).
As predicted, when a faculty member had high psychological capital, the relationship between faculty
dean’s narcissistic personality and faculty member’s psychological well-being was weaker.

4. Conclusion

This study highlighted the relationship between narcissistic personality and psychological well-being.
The results revealed that a leader’s narcissistic personality was negatively related to employees’
psychological well-being, which supported hypothesis 1. The most striking result to emerge from data is
that employees’ perceptions of psychological capital affected the relationship between narcissistic
personality and employees’ psychological well-being. So, hypothesis 2 (psychological capital moderates
the narcissistic personality and psychological well-being relationship) is fully supported. These findings
are consistent with the literature on narcissism in organizational contexts (Campbell, Hoffman, Campbell,
and Marchisio, 2011; Penney and Spector, 2002). Although there are so many studies examining the
narcissism-job performance (e.g., Soyer, Rovenpor, and Kopelman, 1999); narcissism-organizational
citizenship behaviors (e.g., Judge et al., 2006) and narcissism-counterproductive work behaviors (e.g.
Blickle, Schlegel, Fassbender, and Klein, 2006) in literature; narcissism-psychological well-being
relationship and the moderator effect of psychological capital on the relationship between narcissism and
psychological well-being are examined and revealed for the first time through that study, which
 Hakan Erkutlu / Procedia - Social and Behavioral Sciences 150 (2014) 1148 – 1156 1155

differentiates this study from others.

However, this study was conducted on the Universities in Turkey; findings might not be transferable to
all types of organizations. Thus, it is recommended that further researches can be conducted on
organizations in sectors other than higher education sector and in different countries for the
generalizability of findings. Another limitation of this study is that the current study uses a cross-sectional
analysis whereby it gives a snapshot scenario on the approaches and intended approaches of measuring
psychological well-being. A longitudinal study would be useful to identify and supplement the usage,
relevance and flaws of the measures, in particular the long-term measures.
As employees with poor psychological well-being may be less productive, make lower-quality
decisions, and exhibits high absenteeism rates at work (Danna and Griffin, 1999), it seems important for
organizations to focus on enhancing employee well-being. Our study showed that faculty members’
psychological capital enhanced their well-being while their deans’ narcissistic personality lessened it.
This study has number of implications. Firstly, in order to increase faculty members’ well-being at their
work, the dean / department chair should try to minimize his/her narcissistic behavior such as grandiose
sense of self-importance, interpersonal exploitativeness, lack of empathy etc. in order to increase faculty
members’ well-being. Secondly, the dean / department chair should build a productive and supportive
organization culture and working system (Chiaburu and Marinova, 2006) to improve faculty members’
psychological capitals, which relate to their psychological well-being and lower the detrimental effects of
narcissistic leader behaviors.

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