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Personality and Individual Differences 91 (2016) 113–122

Contents lists available at ScienceDirect

Personality and Individual Differences

journal homepage: www.elsevier.com/locate/paid

Direct and interactive effects of narcissism and power on overconfidence


Lee A. Macenczak a,⁎, Stacy Campbell a, Amy B. Henley a, W. Keith Campbell b
a
Kennesaw State University, 1000 Chastain Road, Kennesaw, GA 30144, United States
b
University of Georgia, Athens, GA, 30602, United States

a r t i c l e i n f o a b s t r a c t

Article history: Prior research has separately examined the influence that narcissism and power have on the general concept of
Received 6 August 2015 overconfidence. In this article we examine the influence of narcissism on overconfidence utilizing three different
Received in revised form 18 November 2015 methods to operationalize the overconfidence construct (Studies 1–4). In addition, we examine the role that
Accepted 26 November 2015
power plays in the relationship between narcissism and overconfidence (Studies 2–4). Results indicate that
Available online 9 December 2015
both narcissism and power both individually and collectively exert an influence on overconfidence. Furthermore,
Keywords:
when individuals who score relatively high on the Narcissistic Personality Inventory are in an elevated state of
Narcissism power, overconfidence is significantly higher than for individuals in a low state of power. This interaction effect,
Power however, was only evident when high levels of narcissism were overweighted in the analyses, by, for example,
Overconfidence oversampling (Study 4). We conclude by discussing implications and avenues for future research.
© 2015 Elsevier Ltd. All rights reserved.

1. Introduction understanding of the relationship between narcissism and overconfi-


dence and especially when in positions of power, is important.
Narcissism has been increasingly investigated as a factor influencing In the present paper our goal is to understand the narcissism–over-
behavior in organizations. In particular, the link between narcissism and confidence link by examining a detailed conceptualization of overconfi-
leadership has long been recognized (Freud, 1950) and research has dence as well as the potential role of power. Specifically, four studies are
shown the high likelihood of narcissists to emerge as leaders (Brunell used to assess the relationship between narcissism and three measure-
et al., 2008). Indeed narcissism, a multifaceted personality trait that en- ments of overconfidence. Additionally, in three of these studies, power
compasses an inflated sense of self, feelings of superiority, entitlement, is examined as a potential additive main effect and moderator of the re-
and a constant desire for admiration (Bogart, Benotsch, & Pavlovic, lationship between narcissism and overconfidence. Before describing
2004; Morf & Rhodewalt, 2001) seems to go hand in hand with the ste- the research, however, we want to briefly describe our key variables
reotype of political leaders, CEOs, and other high status individuals of interest.
(Miller et al., 2015). However it is still unclear whether narcissists are
more or less effective once they achieve these positions. While some re- 1.1. Overconfidence
search suggests that narcissists have skills and qualities that are benefi-
cial to becoming leaders in a group (Brunell et al., 2008; Watts et al., Research has shown that most people maintain a deep sense of over-
2013), others have found that narcissism has a range of effects on lead- confidence in their abilities and judgments (Russo & Schoemaker, 1992)
ership, including: negative effects on organizational effectiveness and tend to view themselves in a more positive light than may be
(Peterson, Galvin, & Lange, 2012), null effects of narcissism on organiza- warranted in reality (Dunning, Heath, & Suls, 2004; Klayman, Soll,
tional effectiveness (Resick, Whitman, Weingarden, & Hiller, 2009), or González-Vallejo, & Barlas, 1999). While overconfidence can have a
unpredictable organizational performance at extremes (Chatterjee & beneficial impact in motivating an individual to perform, research has
Hambrick, 2007), a trade-off between success and ethics (Watts et al., indicated that it can also distort one's judgment leading to negative con-
2013), or a curvilinear relationship where narcissism is less effective sequences (Moore & Healy, 2008).
at extremes (Grijalva, Harms, Newman, Gaddis, & Fraley, 2014). Part Overconfidence has been blamed for many outcomes across con-
of the issue is that narcissism is linked to risk taking and overconfidence, texts, from lawsuits and wars to stock market bubbles and crashes.
which can have a range of effects on outcomes (Campbell, Goodie, & This psychological construct has been examined in relationship to
Foster, 2004; Chatterjee & Hambrick, 2007). Thus, gaining a better causes of war (Johnson, 2004), labor strikes (Neale & Bazerman,
1985), merger and acquisitions (Malmendier & Tate, 2005), investing
(Odean, 2002), and entrepreneurial activities (Camerer & Lovallo,
⁎ Corresponding author. 1999). While overconfidence has been studied in relation to a number
E-mail address: lmacenczak@gmail.com (L.A. Macenczak). of outcomes, it may best be characterized as being the most prevalent

http://dx.doi.org/10.1016/j.paid.2015.11.053
0191-8869/© 2015 Elsevier Ltd. All rights reserved.
114 L.A. Macenczak et al. / Personality and Individual Differences 91 (2016) 113–122

and catastrophic problem when considering that judgment and deci- are very confident about their abilities to complete the task at hand and
sion making can lead to such outcomes (Plous, 1993). By increasing have been found to be even overly confident and more confident than
the understanding of what influences an individual's level of overconfi- non-narcissists (Campbell, Bonacci et al., 2004; Campbell, Goodie
dence, we can potentially improve the quality of the individual's et al., 2004; Foster, Reidy, Misra, & Goff, 2011). Furthermore, narcissists
decisions. tend to exaggerate beliefs about their abilities and accomplishments
While the conceptualization of the construct has been examined in (John & Robins, 1994), have high optimism, and inflate their own per-
relation to a variety of variables, early research confounded the different formances (Farwell & Wohlwend-Lloyd, 1998). In order to maintain
methods to operationalize the construct, leading to inconsistent results. their self-view, narcissists will seek the admiration of others
Moore and Healy (2008) presented a reconciliation of the three distinct (Campbell, 1999; Morf & Rhodewalt, 2001; Rosenthal & Pittinsky,
ways in which past research has conceptualized overconfidence. Their 2006), partner with high-status individuals where they can gain status
research found examples in which past research had assumed that the through association (Campbell, 1999), and boast in order to draw atten-
different types of overconfidence result from the same underlying tion to themselves (Buss & Chiodo, 1991). Since they also tend to ignore
psychological causes or studied the construct in inconsistent ways. or not seek disconfirming information (Galinsky, Magee, Gruenfeld,
Their review shows that overconfidence is typically operationalized in Whitson, & Liljenquist, 2008), these individuals continue to believe
one of three ways either focusing on overprecision, overplacement, or that they are better than others.
overestimation. Overprecision occurs when an individual has an inflat-
ed sense of confidence regarding the accuracy of their beliefs (Russo & 1.3. Power, overconfidence, and decision making
Schoemaker, 1992; Soll & Klayman, 2004). As organizations depend
on accurate decision making, having a good knowledge of what one Interesting, many of these outcomes of narcissism are also seen with
does and does not know is important. Overplacement refers to the high power, either actual or induced. For example, previous research
self-serving bias that one is better than others or above average on found that power, like narcissism, can lead to overconfidence in deci-
specific characteristics (Alicke, Klotz, Breitenbecher, Yurak, & sion making tasks with support being found for the presence of power
Vredenburg, 1995; Larrick, Burson, & Soll, 2007). Evolving from Social increasing overconfidence in the accuracy of one's thoughts and beliefs
Comparison theory, research emerged that emphasized downward (Fast, Sivanathan, Mayer, & Galinsky, 2011). These results are consistent
comparisons (Hakmiller, 1966; Wills, 1981) primarily as a source of with other studies which have indicated that individuals in an elevated
self-enhancement and positive affect (Alicke, 1985; Goethals, Messick, state of power will be more optimistic and take more risk (Anderson &
& Allison, 1991; Taylor, 1989; Taylor, Wayment, & Collins, 1993). Indi- Galinsky, 2006), less aversive to loss (Inesi, 2010), more inclined to take
viduals generally seek out and recall social comparison information action (Galinsky, Gruenfeld, & Magee, 2003), less impacted by the press
that is favorable to the individual thus supporting the view that they of a situation (Galinsky et al., 2008), have an illusion of personal control
are superior to others. Overestimation refers to an inflated view of (Fast, Gruenfeld, Sivanathan, & Galinsky, 2009), and have an increased
one's abilities, performance, level of control, or chance of success propensity to discount advice, relying more on their own views (See,
(Clayson, 2005). Thus, there are measurements related to an Morrison, Rothman, & Soll, 2011). The powerful can become aggressive
individual's perception of their accuracy, one related to their belief in in defense of their ego when this power and self-perceived incompe-
their ability, and one that measures their perception of their own per- tence are paired together (Fast & Chen, 2009). Many of these outcomes
formance as it relates to others' skills in the same task. See Moore and of power can be perceived as similar to those of the narcissistic
Healy (2008) for an in-depth and insightful exploration of the dimen- behavior.
sions of overconfidence. While both narcissism and power have been studied a great deal,
Moore and Healy's (2008) results indicate that the three conceptual- with both shown to independently influence overconfidence, it is un-
izations of overconfidence are not different manifestations of the same clear how the two variables work together to influence outcomes relat-
underlying construct and are conceptually and empirically distinct. ed to decision making. There is some research showing that narcissism
Thus, we deemed it important to follow the direction of previous re- and power can be linked in interesting ways. For example, previous re-
search by operationalizing the construct utilizing the separate, distinct sults have indicated that select subcomponents of narcissism are corre-
methods previously defined with the expectation that the different lated with a personal sense of power (Anderson, John, & Keltner, 2012)
methods would produce similar results. and that power can increase the linkage between traits and behaviors
(Bargh, Raymond, Pryor, & Strack, 1995; Chen, Lee-Chai, & Bargh,
1.2. Narcissism, overconfidence and decision making 2001; Keltner, Gruenfeld, & Anderson, 2003). Furthermore, narcissistic
individuals have been shown to desire powerful positions (Kets de
Previous research on narcissism in organizations has focused on Vries & Miller, 1984). Understanding how a sense of power impacts
both the bright and dark side of narcissism. Narcissism has been the behavior of a narcissist can increase our knowledge about
considered a “mixed blessing” meaning that as the narcissist focuses some leaders' decisions. There are several possible relationships:
on behaviors that benefit them, the organization can either benefit or (a) narcissism and power can interact, so the most overconfident deci-
be penalized for their actions (Campbell & Campbell, 2009; Paulhus, sions will take place in the context of high narcissism and high power,
1998). While it is unclear how the narcissism trait is related to perfor- (b) narcissism and power can have an additive effect of decision making
mance (Campbell, Hoffman, Campbell, & Marchisio, 2010), results indi- so that both variables have an effect, but one does not depend on the
cate that organizations led by a narcissist show more volatility and level of the other, or (c) narcissism and power could predict the same
extreme levels of performance (Chatterjee & Hambrick, 2007). Since variance in overconfidence, so that having both in the model will not
leaders are expected to make decisions as a part of their roles that ben- predict better than having either one in the model. Given the past re-
efit the organization, developing a greater understanding of how this search (e.g., Keltner et al., 2003), it is plausible that power will act as a
personality trait influences confidence in decision making may help to moderator of the narcissism → power relationship.
improve decision making process in organizations.
Narcissists are especially prone to errors of overconfidence because 2. Material and methods
they possess the following qualities: they think they are special and
unique (Emmons, 1984), that they are entitled to more positive out- We will begin by examining the relationship between narcissism,
comes in life than are others (Campbell, Bonacci, Shelton, Exline, & the subscales of narcissism, and the three types of overconfidence
Bushman, 2004), and that they are more intelligent and physically at- (Study 1). The final three studies will examine the additive interactive
tractive than they are in reality (Gabriel, Critelli, & Ee, 1994). Narcissists effects of narcissism and power as it relates to overconfidence in
L.A. Macenczak et al. / Personality and Individual Differences 91 (2016) 113–122 115

decision making (Studies 2–4). We replicate our primary analyses in Participants were presented with the trivia questions and asked to se-
several studies to gain more precise estimates of the effects of interest; lect an answer. After each trivia question, in order to capture their
and we draw from different samples in each study to gain confidence in level of confidence that their answer was correct, participants were re-
the generalizability of these effects. quired to select from the following confidence levels: 50–52%, 53–60%,
61–70%, 71–80%, 81–90%, 91–97%, or 98–100% (Campbell, Bonacci
2.1. Study 1 et al., 2004; Campbell, Goodie et al., 2004). For the analysis, the individ-
uals' confidence was taken as the midpoint of the selected category. Fol-
While the linkage between narcissism and overconfidence has been lowing completion of the trivia test, participants were asked to estimate
examined previously, only one method to measure overconfidence was the number of questions that they answered correctly and the average
included and only the total narcissism score was used (Campbell, number of questions that other participants answered correctly.
Bonacciet al., 2004; Campbell, Goodie et al., 2004). Recent research The scores for the different types of overconfidence were computed
has demonstrated the usefulness of examining subcomponents to nar- utilizing the following equations:
cissism (Ackerman et al., 2011; Raskin & Terry, 1988). And, in the case 0 0
of overconfidence it is plausible that different factors of narcissism will Overprecision ¼ Individual s Average Confidence–Individual s Accuracy
predict better than others. Notably, those subfactors of narcissism 
0
associated with extraversion as opposed to (dis)agreeableness (Miller Overplacement ¼ Estimate of own score–Estimate of other s score
et al., 2014) will be potentially more likely to predict overconfidence – ðActual own score – average accuracy of all scoresÞ
(Schaefer, Williams, Goodie, & Campbell, 2004). Recent research has
0 0
also described three different methods to measure overconfidence Overestimation ¼ Individual s estimated score–Individual s actual score:
(Moore & Healy, 2008) that provide a more nuanced understanding of
the construct. Thus, in Study1 we examine the relationship between
the overall narcissism construct, the various subcomponents of narcis- 2.1.2. Results
sism, and each of the different types of overconfidence. Descriptive statistics for the NPI-40 narcissism scores were M =
The following hypotheses were made regarding the direct effect be- 14.76, SD = 7.1. A correlation matrix is presented in Table 1. As expect-
tween narcissism and the types of overconfidence: ed, there was a strong correlation between the NPI-40 and NPI-13 mea-
sures as well as among the three measures of overconfidence. The
Hypothesis 1. Individuals with a higher level of narcissism will exhibit average confidence level was 79%, the average level of overprecision
higher levels of overprecision (1a), overplacement (1b), and overestima- was .16, the average level of overplacement was −.37, and the average
tion (1c) in their decisions. level of overestimation was − 0.67. The hypothesized relationships
(Hypotheses 1a, 1b, and 1c) were tested via a series of regression anal-
yses. The results of these regression analyses are shown in Table 2. As
2.1.1. Method predicted, narcissism was a significant predictor of each type of
overconfidence.
2.1.1.1. Participants. A sample of 182 participants were recruited using The present study also examined the relationship between the
the Qualtrics online survey panel. In order to qualify for participation, shorter-version of the NPI with the each of the three types of overconfi-
individuals were required to be 18 years of age or older, employed, dence. Descriptive statistics for the NPI-13 narcissism scores were M =
and born and living in the U.S. Individuals were compensated $5 for 3.67, SD = 2.57. Regression analyses were once again run utilizing the
completing the survey. Following a review of the participant's re- NPI-13 scores and each type of overconfidence. As seen in Table 2, fairly
sponses, 47 were eliminated due to incomplete data, leaving a final consistent with the longer version, NPI-13 significantly predicts two of
sample of 135 participants, (53% male, 80% Caucasian, and 58% between the different types of overconfidence.
the ages of 35 & 54). In order to gain a deeper understanding of the NPI-40 structure, past
research has examined the multiple dimensions that are embedded
2.1.1.2. Procedure. Once the individuals passed the initial screening qual- within the NPI-40 item pool (Ackerman et al., 2011; Emmons, 1984;
ifications, they were asked to complete a brief section of demographic Emmons, 1987; Raskin & Terry, 1988). While there has been consider-
information. Participants then completed the 40-item narcissistic per- able debate as to the precise factor structure of the NPI, recent results
sonality inventory (NPI) (Raskin & Terry, 1988). Each item within the provided support for a three-factor solution consisting of Leadership/
NPI-40 contains two self-descriptive statements, one narcissistic and Authority, Grandiose/Exhibitionism, and Entitlement/Exploitativeness
one non-narcissistic, from which the participant must choose the one (Ackerman et al., 2011). Following the subscales recommended by
that best describes them. One point is given for a selection of a narcissis- Ackerman et al. (2011), 25 items from the NPI-40 were used to form
tic statement (e.g. “I like having authority over other people” versus “I the subscales (Leadership/Authority = 11 items, Grandiose/Exhibition-
don't mind following orders”). Scores can range from 0–40, with higher ism = 10 items, Entitlement/Exploitativeness = 4 items). The first two
scores indicating higher narcissism. We also tested a shorter version of these scales are associated more strongly with extraversion, and the
of the NPI that utilizes 13 existing questions within the NPI-40. The latter with low agreeableness (Miller et al., 2014).
NPI-13 has been shown to produce results consistent with those of
the longer version (Gentile et al., 2013). In order to validate the use of
the shorter scale, we performed the extra step in the first study to Table 1
show that there were similar results from the 40- and 13-item scales. Descriptive statistics and correlations.
Because we were performing a power manipulation in the subsequent
M SD 1 2 3 4
studies, we felt using the shorter, less fatigue inducing version of the
NPI in those studies would be the correct choice. 1. NPI_40 14.76 7.15 1.00
2. NPI_13 3.67 2.57 .84⁎⁎ 1.00
After completing the NPI-40, participants were told that they were
3. Overprecision .16 .16 .44⁎⁎ .43⁎⁎ 1.00
going to take a trivia test with 15 general knowledge questions. The sur- 4. Overplacement −.37 4.79 .18⁎ .10 .45⁎⁎ 1.00
vey utilized fifteen two-alternative forced choice general knowledge 5. Overestimation −.67 3.59 .36⁎⁎ .30⁎⁎ .72⁎⁎ .50⁎⁎
questions, a format which had been successfully utilized in previous N = 135.
studies (Nelson & Narens, 1980) (e.g. Which has a larger land mass? ⁎⁎ Correlation is significant at the 0.01 level (2-tailed).
Israel or New Jersey, see Appendix B for complete list of questions). ⁎ Correlation is significant at the 0.05 level (2-tailed).
116 L.A. Macenczak et al. / Personality and Individual Differences 91 (2016) 113–122

Table 2 Rhodewalt, 2001). Narcissism creates a focus on an individual's self-


Results of regression analyses predicting overconfidence. view, and how a person maintains that view, and what a person will
Overprecision Overplacement Overestimation do to maintain it, becomes increasingly important.
NPI-40 .44⁎⁎⁎ .18⁎ .36⁎⁎⁎
Chen et al. (2001) found that the orientation of an individual moder-
R2 .19 .03 .13 ated the behavior for a high power individual: exchange-oriented indi-
F 31.48⁎⁎⁎ 4.20⁎ 20.34⁎⁎⁎ viduals in an elevated state of power acted in a self-serving manner,
NPI-13 .43⁎⁎⁎ .10 .30⁎⁎⁎ while communally-oriented individuals acted in a more socially respon-
R2 .19 .01 .09
sible manner. The traditional definition for narcissism appears to be
F 30.20⁎⁎⁎ 1.28 13.48⁎⁎⁎
Leadership/Authority .25⁎⁎ .31⁎⁎ .18 similar to that of exchange-orientation, with both focusing on promot-
Grandiose/Exhibitionism .24⁎ −.10 .23⁎ ing one's self-interests. Non-narcissists appear to be more closely relat-
Entitlement/Exploitativeness .08 −.12 .07 ed to communally-oriented individuals with both focusing on overall
R2 .20 .08 .14 benefits for others. Power is also thought to strengthen the correspon-
Model F 10.58⁎⁎⁎ 3.74⁎ 7.23⁎⁎⁎
dence between traits and expression as Chen et al. (2001) found that
Note: Standardized regression coefficients are reported. the possession of high power leads individuals who were communally
⁎ p b .05.
⁎⁎ p b .01.
oriented to demonstrate greater generosity while exchange-oriented
⁎⁎⁎ p b .001. individuals engage in more self-serving behaviors when they have
power. This same link to strengthening traits and expression was not
found in low-power situations.
To examine how the subscales influence each type of overconfi- As power has been shown to enhance behaviors in specific environ-
dence, the subscales were simultaneously entered into a multiple re- ments we hypothesize that elevated power will increase the behavioral
gression with each type of overconfidence. The Leadership/Authority outcomes of narcissism. We made two sets of hypotheses. First, there is
and Grandiose/Exhibitionism subscales were both significant with the additive hypothesis (a.k.a., simultaneous main effect model):
two of the overconfidence types, see Table 2. The Entitlement/
Exploitativeness subscale did not significantly predict any type of Hypothesis 2. Narcissism and power will positively and additively predict
overconfidence. increases in overprecision (2a) overplacement (2b) and overestimation
(2c).
2.1.3. Summary
As expected the results indicated that narcissism is positively related Next, there are the interaction hypotheses:
to the different measures of overconfidence. Results indicate general
consistency in both types of narcissism scales predicting overconfi- Hypothesis 3. Narcissism and power will interact such that under
dence. As previous research has indicated that is common to find situa- conditions of high power relative to low power, the relationship between
tions in which people exhibit underconfidence by underplacing their narcissism and overprecision (3a) overplacement (3b) and overestimation
performance relative to others on difficult tasks (Moore & Healy, (3c) will be higher.
2008), it is not unexpected that the relationship between NPI-40 and
overplacement was weaker than the other overconfidence types and In Study 2, to measure narcissism and overconfidence we followed a
was not significant when utilizing NPI-13. The trivia test was designed process similar to that used in the initial study. As the correlation be-
not to be an easy task, as the questions were considered difficult for tween NPI-40 and NPI-13 in Study 1 was high, generally produces sim-
most participants. Participants only averaged 9 correct answers out of ilar results, and uses less attention on the part of participants, for the
15, an average accuracy of 60%. remaining studies we used the shorter version of the narcissism test.
An analysis of the subcomponents shows that the Leadership/ We induced power via a priming manipulation.
Authority and Grandiose/Exhibitionism were the main subcomponents
that influenced overconfidence. Both of these subcomponents influ- 2.2.1. Method
enced multiple types of overconfidence, while the Entitlement/
Exploitativeness subcomponents exerted little influence on any type 2.2.1.1. Participants. For this study participants were solicited from
of overconfidence. It is likely that the link of the first two dimensions Amazon's Mechanical Turk website. Amazon's service allows re-
with extraversion and approach orientation accounts for the stronger searchers to collect data online from a broad source of individuals,
link with overconfidence (Foster & Trimm, 2008; Schaefer et al., 2004). which can provide a diverse sample (Buhrmester, Kwang, & Gosling,
2011). To participate in the survey, individuals must have been
2.2. Study 2 18 years of age or older and reside in the U.S. Individuals were compen-
sated $0.75 to participate in the survey. As the users on the Mechanical
Now that we were able to demonstrate the narcissism and overcon- Turk website earn compensation based on the number of activities they
fidence link, we next examined narcissism and the role of power. complete, to insure that the participants spent enough time carefully
Elevated power and narcissism both create a greater sense of optimism considering the activities and that the power manipulation was effec-
and reduce the amount of influence environmental factors have upon tive, a minimum response time was required. To develop the minimum
the individual's decision making (Anderson & Galinsky, 2006; Farwell response time we took the average completion time for all surveys and
& Wohlwend-Lloyd, 1998; Galinsky et al., 2008). Power may not inher- then eliminated those where the time were less than the mean minus 1
ently corrupt, but reduces the strength of the situational influence and standard deviation. Additionally, each case was examined for complete
allows the individual to focus more on his or her own opinion and data and compliance with the manipulation exercise. There were 205
self-serving desires through the activation of the behavioral approach participants who completed the process. Of those completed 58 were
system which is also consistent with narcissism (Galinsky et al., 2008). eliminated for not following directions in the power manipulation
Power impacts the cognitive decision making process (Keltner et al., (e.g. writing nonsense letter strings) and not meeting the time require-
2003) as does narcissism, which reveals motivational factors that are ments. The final was sample of 147 participants (51% female, 80% Cau-
often viewed as cognitive processes (Campbell, Bonacci et al., 2004; casian, 74% between the ages of 26 & 54).
Campbell, Goodie et al., 2004). The narcissist self-conception becomes
a part of his or her motivational system, which includes goals of being 2.2.1.2. Procedure. After completing a brief section of demographic infor-
better than others, power, and having their selfish needs met (Morf & mation, participants were asked to complete a 13-item NPI (Gentile
L.A. Macenczak et al. / Personality and Individual Differences 91 (2016) 113–122 117

et al., 2013). Following the NPI assessment, participants were primed post hoc analysis, we coded NPI scores +1 standard deviation as high,
with either high or low power. Specifically, participants were asked to and the remaining lower scores as low.
recall and write about a situation in which they had or lacked power Using this method that overweights high narcissism scores, we uti-
over another individual or group (Galinsky et al., 2003). Participants in lized a 2-way ANOVA to examine the interaction effect and found re-
the high-power condition described a situation where they controlled sults consistent with Hypothesis 3. There was significant interaction
another person or group, while the low-power condition participants between power and narcissism for overprecision, F(1,143) = 4.42,
described a situation in which someone had power over them. Partici- p = .04, R2 = .13, and overestimation, F(1,143) = 6.66, p = .01, R2 =
pants were randomly assigned to each condition (high power condition, .14. No interactive effect was found for overplacement, F(1,142) = .98,
n = 78, low power condition, n = 69). As expected, individuals primed p = .32.
to the high power condition had higher perceptions of power (M = While this exploratory process gave an indication that there maybe
2.03) than those in the low power condition (M = 1.68), p b .01. an interaction at the high levels of narcissism, the process used to
As in Study 1, participants were then told that they were going to group the data also led to unequal cell sizes. Since this issue limited
take a trivia test with 15 general knowledge questions. Participants our ability to rely on the results, we also decided to explore the data
were then presented with the same questions and confidence intervals. using quartiles, which we believed would offer a view of the effects at
Following the trivia test, they were asked to estimate the number of different levels of narcissism. The narcissism scores were divided into
questions that they had answered correctly as well as the average num- quartiles and examined utilizing a 2-way ANOVA. Results showed that
ber of questions that other participants had answered correctly. there was no overall interaction effect between narcissism and power;
however, in reviewing the results from a Bonferroni test, an interaction
2.2.2. Results was detected at the highest quartile for overprecision (p b .01) and over-
Descriptive statistics for the NPI-13 scores were M = 2.90, SD = estimation (p = .01), similar to the prior analyses.
2.96. The average confidence level was 77%, the average level of
overprecision was .12, the average level of overplacement was −.07, 2.2.4. Summary
and the average level of overestimation was − 1.99. Consistent with We replicated the findings of Study 1. We found support for an addi-
the results found in Study 1, narcissism was found to be a significant tive model of narcissism and power in predicting overconfidence. How-
predictor of each type of overconfidence (Table 3). ever, support for an interaction model was only found when we
In Step 2 of the model, we entered power to test the additive model, conducted exploratory analyses that overweighted high narcissism
and found that narcissism and power predicted both overprecision scores. Given our exploratory results – and the important need to repli-
and overestimation but not overplacement, fairly consistent with cate all findings – we conducted a replication in using a different
Hypothesis 2. In Step 3 we entered the interaction term and found, in- sample.
consistent with Hypothesis 3, there is not significant interaction be-
tween narcissism and power (Aiken & West, 1991). 2.3. Study 3

2.2.3. Post-hoc exploratory analysis In Study 3, we once again utilized the same model to examine the in-
Since there is no defined point at which someone is considered high teractive effects of narcissism and power. The sample for this study was
in narcissism (Foster & Campbell, 2007) and past research has indicated drawn from students at a major southeastern university. At the discre-
that the effects of narcissism grow as narcissism increases (ex. Campbell tion of the instructors, students were given extra course credit for par-
& Campbell, 2009; Campbell, Goodie et al., 2004; Chatterjee & ticipating in the experiment. The purpose of this study was to validate
Hambrick, 2007), we performed an exploratory post hoc analysis to in- the results from the second study utilizing a different sample.
vestigate whether an interaction between narcissism and power exists
only at elevated levels of narcissism. Past research has indicated that 2.3.1. Method
the effects of narcissism can vary at high and low levels of narcissism
(Zuckerman & O'Loughlin, 2009) so we wanted to explore the possibil- 2.3.1.1. Participants. A sample of 267 business students, (53% male, 67%
ity of an interaction at the high level of narcissism. Recent research has Caucasian, and 77% between the ages of 26–34), were recruited from
shown that interaction effects are exceptionally challenging to find and both undergraduate and graduate level classes at a major southeastern
replicate without a high level of power (Ebersole et al., 2015). One way university. Following a review of the cases, 10 were eliminated due
to increase the power to detect an interaction is to overweight partici- to incomplete data and not following the directions in the power
pants at the end of a continuum. To create the subset of data for the manipulation.

Table 3
Study 2 — narcissism influence on overconfidence.

Dependent variables

Variable Overprecision Overplacement Overestimation

Step 1 Step 2 Step 3 Step 1 Step 2 Step 3 Step 1 Step 2 Step 3

Predictor variables
NPI .32⁎⁎⁎ .32⁎⁎⁎ −.14 .30⁎⁎⁎ .30⁎⁎⁎ .16 .31⁎⁎⁎ .31⁎⁎⁎ −.10
Power .17⁎ .18⁎ .07 .07 .15⁎ .15⁎
Interaction term
NPI × Power .48 .14 .42
Model F 16.94⁎⁎⁎ 11.22⁎⁎⁎ 8.77⁎⁎⁎ 14.11⁎⁎⁎ 7.47⁎⁎ 5.05⁎⁎ 15.67⁎⁎⁎ 9.87⁎⁎⁎ 7.54⁎⁎⁎
R2 .11 .14 .16 .09 .10 .10 .10 .12 .14
Adj. R2 .10 .12 .14 .08 .08 .08 .09 .11 .12
Δ R2 .03⁎ .02 .01 .00 .02⁎ .02

Note: Standardized regression coefficients are reported.


⁎⁎⁎ p b .001.
⁎⁎ p b .01.
⁎ p b .05.
118 L.A. Macenczak et al. / Personality and Individual Differences 91 (2016) 113–122

2.3.1.2. Procedure. The same process utilized in the previous studies was 2.4.1. Method
followed for this study with participants taking the NPI-13, primed for
either a high or low power condition (high power condition, n = 125, 2.4.1.1. Participants. A sample of 310 individuals was recruited to partic-
low power condition, n = 132), and taking a test with fifteen general ipate in the study using the Qualtrics online survey panel. In order to
knowledge questions. qualify for participation, individuals were required to be within the
ages of 18 and 35, employed, and living in the U.S. Individuals were
2.3.2. Results compensated $7.50 for completing the survey. Utilizing the same pro-
Descriptive statistics for the NPI-13 scores were M = 4.57, SD = cess as in Study 2, we developed a minimum response time for complet-
2.79. The average confidence level was 74%, the average level of ed surveys, reviewed the cases for complete data, and insured that
overprecision was .13, the average level of overplacement was −.56, directions were followed on the power manipulation. This process
and the average level of overestimation was − 1.54. Consistent with eliminated 60 responses leaving a final sample of 250 individuals,
the results from Studies 1 & 2, narcissism was found to be a significant (64% female, 68% Caucasian, with a mean age of 28). This sample
predictor of each type of overconfidence (see Table 4). contained more females at the higher levels of narcissism than
In Step 2 of the model, we entered power to test the additive model, contained in the previous two studies. Otherwise, the demographics
and found that narcissism and power both predicted all three types of were similar.
overconfidence, consistent with Hypothesis 2. In Step 3 we entered In order to insure that our sample contained a higher mean level of
the interaction term and found, inconsistent with Hypothesis 3, no sig- narcissism than usual, we oversampled for narcissism by using the
nificant interaction between narcissism and power (Aiken & West, single-item narcissism scale (SINS) to screen potential participants
1991). (Konrath, Meier, & Bushman, 2014). The item asks, “To what extent do
you agree with this statement: “I am a narcissist.” (Note: the word “nar-
2.3.3. Post-hoc analysis: replication cissist” means egotistical, self-focused, and vain.).” Responses were
To examine whether the interaction effect between power and nar- based on a seven-point scale ranging from 1 “not very true of me” to 7
cissism exists only at elevated levels of narcissism, we followed the “very true of me.” Only individuals responding at the level of 4 or higher
same process utilized in Study 2. NPI scores + 1 standard deviation were allowed to participate in the survey.
were scored as high, and the remaining lower scores as low.
Using this method, we utilized a 2-way ANOVA to examine the 2.4.1.2. Procedure. The same process utilized in the previous studies was
interaction effect and found results consistent with Hypothesis 3. followed for this study with participants taking the NPI-13, primed for
There was significant interaction between power and narcissism for either a high or low power condition (high power condition, n = 125,
all three types of overconfidence (Overprecision, F(1,253) = 3.85, low power condition, n = 125), and taking a test with fifteen general
p = .05; Overplacement, F(1,253) = 3.93, p = .05; Overestimation, knowledge questions. As expected, individuals primed to the high
F(1,253) = 5.94, p = .02). power condition had higher perceptions of power (M = 2.59) than
We also used the secondary exploratory process utilizing quartiles to those in the low power condition (M = 2.34), p b .01.
examine the results. Results showed that there was no overall interac-
tion effect between narcissism and power; however, in reviewing the 2.4.2. Results
results from a Bonferroni test, an interaction was detected at the highest Descriptive statistics for the NPI-13 scores were M = 7.95, SD =
quartile for overprecision (p b .01), overplacement (p = .01), and over- 3.52. The average confidence level was 83%, the average level of
estimation (p = .01), similar to the prior analyses. overprecision was .19, the average level of overplacement was 1.81,
and the average level of overestimation was 0.92. Consistent with the
2.4. Study 4 results from Studies 1 & 2, narcissism was found to be a significant pre-
dictor of each type of overconfidence (see Table 5).
Since the post-hoc analyzes used in the previous studies indicated In Step 2 of the model, we entered power to test the additive model,
that the interaction between narcissism and power is only seen at the and found that narcissism and power both predicted all three types
higher level of narcissism, we decided to test the model by focusing pri- of overconfidence, consistent with Hypothesis 2 (Overprecision,
marily on people with high levels of narcissism. Since there is no ideal Narcissism β = .14⁎, Power β = .14⁎; Overplacement, β = .34⁎⁎⁎,
way to look at extremes of distribution, the purpose of this study was Power β = .14⁎; Overestimation, (Narcissism β = .31⁎⁎⁎, Power β =
to validate the post-hoc results from the previous two studies utilizing .14⁎). In Step 3 we entered the interaction term and found, consistent
a sample focused on individuals with higher levels of narcissism. with Hypothesis 3, significant interaction between narcissism and

Table 4
Study 3 — narcissism influence on overconfidence.

Dependent variables

Variable Overprecision Overplacement Overestimation

Step 1 Step 2 Step 3 Step 1 Step 2 Step 3 Step 1 Step 2 Step 3

Predictor variables
NPI .29⁎⁎⁎ .29⁎⁎⁎ .10 .27⁎⁎⁎ .27⁎⁎⁎ .08 .31⁎⁎⁎ .30⁎⁎⁎ .12
Power .17⁎⁎ .17⁎⁎ .13⁎ .13⁎ .12⁎ .12⁎
Interaction term
NPI × Power .20 .20 .20
Model F 22.93⁎⁎⁎ 15.90⁎⁎⁎ 11.0⁎⁎⁎ 20.05⁎⁎⁎ 12.69⁎⁎⁎ 8.87⁎⁎⁎ 26.22⁎⁎⁎ 15.41⁎⁎⁎ 10.66⁎⁎⁎
R2 .08 .11 .12 .07 .10 .10 .09 .11 .11
Adj. R2 .08 .10 .11 .07 .09 .08 .09 .10 .10
Δ R2 .03⁎⁎ .00 .02⁎ .00 .02⁎ .00

Note: Standardized regression coefficients are reported.


⁎⁎⁎ p b .001.
⁎⁎ p b .01.
⁎ p b .05.
L.A. Macenczak et al. / Personality and Individual Differences 91 (2016) 113–122 119

Table 5
Study 4 – narcissism influence on overconfidence – focus on high narcissists.

Dependent variables

Variable Overprecision Overplacement Overestimation

Step 1 Step 2 Step 3 Step 1 Step 2 Step 3 Step 1 Step 2 Step 3

Predictor variables
NPI .14⁎ .14⁎ −.36 .34⁎⁎⁎ .34⁎⁎⁎ −.06 .31⁎⁎⁎ .31⁎⁎⁎ −.17
Power .14⁎ −.24 .14⁎ −.16 .14⁎ −.22
Interaction term
NPI × Power .65⁎⁎ .52⁎ .63⁎⁎
Model F 4.91⁎ 4.94⁎⁎ 5.80⁎⁎ 33.19⁎⁎⁎ 19.77⁎⁎⁎ 15.16⁎⁎ 26.56⁎⁎⁎ 16.36⁎⁎⁎ 13.65⁎⁎⁎
R2 .02 .04 .07 .12 .14 .16 .10 .12 .14
Adj. R2 .02 .03 .06 .01 .13 .15 .09 .11 .13
Δ R2 .02⁎ .03⁎⁎ .02⁎ .02⁎ .02⁎ .03⁎⁎

Note: Standardized regression coefficients are reported.


⁎⁎⁎ p b .001.
⁎⁎ p b .01.
⁎ p b .05.

power (Overprecision β = .65⁎⁎, Overplacement β = .52⁎, Overestima- that they both predict overconfidence individually. In this case, you
tion β = .63⁎⁎) (Aiken & West, 1991). To illustrate the nature of this in- have two variables that predict an outcome and in an additive way.
teraction, separate regression lines were plotted for individuals +1SD An additive effect is not the only effect that could have happened. For
and −1SD around the mean on the narcissism measure following pro- example, work on the dark triad often shows that the predictors account
cedures by Aiken and West (1991). A plot of the relationship for both for similar rather than additive variance. The effect in the current study
subgroups is presented in Appendix A. Inspection of these figures docu- is additive and multiplicative at high levels. Either way, the combination
ments that higher levels of overconfidence were consistently associated of narcissism and power will be potentially more problematic than ei-
with higher levels of narcissism, but this effect was enhanced for the ther predictor by itself.
groups who were in a state of high power. As power exists in all organizations, leaders should be aware of the
effects and specifically, how states of power and the trait of narcissism
3. Discussion together can impact outcomes in an organization. Organizations should
insure that processes are in place to monitor and balance the decision
Across four studies, we found evidence that (a) narcissism predicts making of top managers to prevent the negative effects of overconfi-
overconfidence, (b) the effect of narcissism and power together work dence from disrupting decision making. While there may be some situ-
in an additive ways to predict overconfidence, and (c) when high ations in which overconfidence produces positive results, like the
narcissism is overweighted (but not otherwise) there is an interactive beginning of a bull market, in general, when left unbalanced, managers
effect such that narcissism and power together lead to especially may believe that their decisions are more precise than they are in reality
elevated overconfidence. We examined the interaction issue by and may overestimate their accuracy leading to poor organizational
overweighting narcissism in an exploratory way in Study 2, replicated outcomes.
the process in Study 3. As we did not want to overinterpret the interac- The worst combination is high power and high narcissism with both
tive results from Studies 2 and 3 in which we focused on only parts of working additively and interactively to influence confidence in decision
the sample, we used a strategy in Study 4 to examine the same effect making. Since those high in narcissism often seek high position of
by oversampling for high narcissists and using a standard regression power, this can make for a dangerous combination if left unchecked.
to test for interaction in a full sample. Because of this consistent pattern Past literature examining leaders has indicated that narcissists often
of findings, we have confidence that the interaction between narcissism emerge as leaders in organizations (Brunell et al., 2008). A good exam-
and power is important and reliable. ple of this would be the situation that occurred at Enron. There, many
leaders that were likely high in narcissism, made overly risky decisions
3.1. Theoretical and empirical contributions in which they had high degrees of confidence. Organizations should
have processes in place to monitor the decision making of top managers
There are two main contributions of the current research. First we to insure that those in power have proper processes in place to insure
looked at the joint influence of power and narcissism and how they that decisions are properly vetted.
are related to overconfidence. As there are multiple methods to mea-
sure overconfidence, we operationalized the construct utilizing each. 3.2. Limitations
Our current research has shown how both narcissism and power consis-
tently and additively predict specific types of overconfidence. These Although the current paper presents consistent findings across three
findings help deepen our understanding of how the personality trait studies, it is not without its limitations. First, the participants were not
of narcissism influences various aspects of decision making, specifically all managers within a business. To participate in the online panels, par-
in situations where the individual is in a state of power. ticipants were required to be employed, with 43% being in management
Second, we examined the moderating effect of power on the rela- positions. In the student sample, participants were not required to be
tionship between narcissism and overconfidence. It is plausible that employed but just meet a minimum age requirement. Even with these
the inconsistent relationship between leadership and narcissism could very different samples of participants, we did find consistent results
be better understood through the identification of moderators of the across the sample, which gives us some confidence in the generalizabil-
impact of narcissism on leader behaviors and effectiveness (Campbell ity of these findings.
et al., 2010). The results of the current study suggest that power could Second, the experiments were conducted in an online or controlled
be one such moderator. When narcissism is paired with power, there environment. To ascertain whether there is a possible impact to the or-
is a heightened probability of risky decision making. The fact that they ganization, it would be interesting to test the model in a field study with
explain different variance is interesting and not implied by the fact situations more specific to the individual's position. Our results indicate
120 L.A. Macenczak et al. / Personality and Individual Differences 91 (2016) 113–122

that on a general type of exercise the different types of overconfidence Appendix A


are impacted by narcissism and power, but it is unknown whether the
impact would be seen when the decision is related to one's actual posi- Study 4 — Interaction effect of narcissism and power on
tion. As an individual's tenure, familiarity and knowledge of the issue overprecision.
and environment may also contribute to the individual's decision mak-
0.3
ing ability, utilizing a field study would greatly improve the ecological
validity of the outcome variable and test the actual impact of power 0.28
rather than utilizing a power prime. 0.26
Finally, this study utilizes a process whereby we measure the impact
0.24
of power and narcissism at a point in time. It is unclear as to the longer-

Overprecision
term impact of these factors on overconfidence. Additional research 0.22
would be required to examine how the influence of power and narcis- 0.2
sism evolve over time as it is possible there could be a learning process 0.18 Low Power
that mitigates overconfidence with experience. High Power
0.16
0.14
3.3. Future research
0.12
There are several possible avenues for future research into this topic. 0.1
First, it would be useful to confirm the ecological validity of this finding Low High
by studying decision making in organizations. One possibility would be Narcissism
to do diary research on a sample of organizational leaders to see if mo-
mentary fluctuations in power interacted with trait narcissism to pre-
dict specific decisions in the organizational context. Study 4 — Interaction effect of narcissism and power on
Second, gaining insight into strategies that would mitigate the nar- overplacement.
cissism and power to risky decision link would be an important step
to developing interventions. There are several possible mechanisms 4.5
that could be investigated. Increasing communal concerns in some con-
4
texts might be effective (Finkel, Campbell, Buffardi, Kumashiro, &
Rusbult, 2009). Likewise, increasing individual accountability for deci- 3.5
sion process and outcomes may increase attention to details and thus,
might reduce risk taking (Lerner & Tetlock, 1999; Mero & Motowidlo, 3
Overplacement

1995; Weigold & Schlenker, 1991). Finally, the decision making model
2.5
for managers is complex with many factors influencing outcomes
(Vroom, 2000). Narcissism and power may influence how managers 2 Low Power
identify the problem, choose a decision style, develop alternatives, or se- High Power
1.5
lect the best solution. The factors may also influence how the various sit-
uation factors (i.e. decision significance, importance of commitment, 1
leader expertise, etc.) influence the selection of the proper leadership
decision styles (i.e. decide, consult individually/group, facilitate, dele- 0.5
gate). Increasing our understanding or how these factors can influence
0
the decision making model may lead to a change in the model when Low High
narcissism and power is present.
Narcissism
Finally, future research could look for additional factors in addition
to narcissism and power that might further add to risk taking. One can-
didate would be ego involvement. In cases of high involvement risk tak- Study 4 — Interaction effect of narcissism and power on
ing may increase. Another candidate would be ego threat. It is plausible overestimation.
that under conditions on ego threat narcissistic individuals would show
greater risk taking. 2.5
States of power are present in all organizations and the effects of
power have been shown to impact most areas of the organization. 2
How individual traits, such as narcissism, influence individuals
1.5
when in positions of power is something that is important to how orga-
nizations perform in the future. This study has indicated that power and
Overestimation

1
narcissism work together to influence the different types of overconfi-
dence. Future studies should examine whether the additive and interac- 0.5
tive effects of power of narcissism would be present in other situations. Low Power
As narcissist have a desire for power, understanding how the narcissism 0 High Power
influences other areas of leader behavior would be beneficial.
-0.5

Data transparency -1

-1.5
The data reported in this manuscript has not been previously pub- Low High
lished and was collected for specific use in the current studies. Sources
Narcissism
for the data were Amazon's Mechanical Turk, Qualtrics User Panels,
and students at two different colleges/universities.
L.A. Macenczak et al. / Personality and Individual Differences 91 (2016) 113–122 121

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