Unravelling the Relationship between Dark Triad Traits and Effectuation and Causation within Small‐ and Medium‐sized Enterprises

Abstract

Prior studies have examined effectuation and causation as alternative behavioural logics used by entrepreneurs to manage uncertainty, noting a number of antecedents of the tendency to rely on a given logic at different levels of analysis. This study aims to broaden the understanding of individual-level antecedents by examining the role of the so-called dark side of the CEO personality on decision-making processes within smalland medium-sized enterprises (SMEs). Using the lens of upper echelons theory and traitactivation theory, we focus on three personality characteristics: narcissism, psychopathy, and Machiavellianism. The impact of dark triad traits on the behavioural logic employed by the CEO is argued to be moderated by the perceived level of uncertainty experienced by the firm. A set of hypotheses regarding these relationships are tested with a random sample of CEOs of Russian SMEs. The findings suggest that CEOs scoring higher in psychopathy tend to adopt a causal logic, while Machiavellians rely on an effectual logic. The level of uncertainty shapes these relationships by weakening the links between dark triad traits and behavioural logics.

Effectuation and identity in entrepreneurship: A systematic review

“…An example of such influences is offered by the application of the crazy quilt and bird in hand principals according to traits of sensitivity to feedback, sociability and ambition. Also studying aspects of personality, but linked to traits of the black triad (narcissism, psychopathy and Machiavellism), Shirokova et al (2022) identified that the effects of such triad are moderated by the perception of the level of uncertainty in the business environment of small and medium companies. The uncertainty perceived weakens the connections between the traits of the black triad and the effectual and causal logics.…”

“…Unraveling the Relationship between Dark Triad Traits and Effectuation and Causation within Small-and Medium-sized Enterprises Shirokova, Selivanovskikh, Morris & Bordunos, 2022 To amplify the comprehension of antecedents, at the individual level, examining the role of the dark side of the CEO's personality in the process of decision making in small and medium enterprises.…”

How Does Abusive Supervision Affect Organisational Gossip? Understanding the Mediating Role of the Dark Triad

“…One study found that narcissists who felt threatened (compared to those who were not) responded by expressing a significantly negative view of the personality of others [ 61 ]. Whereas charismatic and superior narcissists believe other people should be interested in their work [ 70 ].…”

“…Specifically, it is claimed to be activated by situational cues that are activated or align with the exploitative nature of Machiavellians [ 72 ]. Therefore, the impulse control of the Machiavellian is triggered when malicious leadership, such as abusive supervision, creates a risky situation [ 68 , 70 ]. Greenbaum, Hill, Mawritz, and Quade [ 30 ] found that abusive supervisors strengthen the relationship between Machiavellianism and unethical behaviours by giving clues that activate the Machiavellian employee’s distrust of others, immoral manipulation, and the desire for control and status.…”

“…It is claimed that psychopathy is not taxonomic (i.e., present or absent) but dimensional (i.e., it varies in degree among individuals) [ 29 ]. In contrast to narcissists, individuals with high psychopathic tendencies are less sensitive to risk and related losses [ 70 ]. Abusive supervisors can create external, powerful threats that psychopaths cannot directly control.…”