Narcissistic and Workaholic Leaders Guide Young Firms to Success
Scientists at HSE University—St. Petersburg studied how the founder's personal characteristics impact a young firm's performance. It turns out that a narcissist and workaholic who also fosters innovation will effectively grow their company. The paper has been published in IEEE Transactions on Engineering Management.
Companies in the early stages of development are highly dependent on their founders, making the leader's personal characteristics crucial in either enhancing or undermining the firm's performance. Scientists of the Strategic Entrepreneurship Centre at HSE University—St. Petersburg and students of the St. Petersburg School of Economics and Management studied the impact of founders' workaholism and narcissism on the performance of young companies. Additionally, they examined the effect of innovation on the firm's results. This study is part of a project aimed at investigating student entrepreneurship and identifying factors that encourage proactive behaviour in young people. The project was implemented with support from the HSE Basic Research Programme.
Galina Shirokova
'It is believed that business model innovation is not relevant to a young firm that has only recently developed its business model. Research on this topic is scarce and primarily focuses on established companies. We hypothesized that in our evolving market, young firms must actively adapt to the constantly changing environment, so the introduction of innovation can positively impact their performance,' according to Galina Shirokova, Director of the Strategic Entrepreneurship Centre.
To test the study's hypotheses, the researchers used Russian data from the 2021 Global University Entrepreneurial Spirit Students' Survey (GUESSS). The survey aims to assess students' entrepreneurial intentions and activities, along with the key factors influencing them. Data from GUESSS is extensively used by business and management scholars around the world.
The Russian researchers focused on the leaders of young firms that have been in the market for 2 to 10 years. The final sample comprised 205 students—founders of firms, most of which were small, with an average staff of four people. Among them, 18.05% were involved in trade, 14.63% in education and training, and 13.17% in advertising and marketing. The average age of respondents was 22 years. The majority of respondents—77.7%—were enrolled in bachelor's programmes, with 33.17% pursuing education in business and management.
Selected participants completed an online questionnaire in which most responses were measured on a Likert scale, assessing the degree of agreement or disagreement with each statement, ranging from 'strongly agree' to 'strongly disagree.' Thus, respondents assessed the company's sales, market share, and profit growth relative to key competitors using a 7-point scale, where 1 represented 'very poor' and 7 represented 'very good.'
When measuring business model innovation, respondents were first prompted with the phrase: 'Indicate your level of agreement with the following statement about your company over the past three years (1 - strongly disagree, 7 - strongly agree).' The questions addressed changes in core competencies, revenue mechanisms, and target customers.
In a questionnaire used to assess workaholism, participants indicated their level of agreement with various statements, such as: 'It’s important for me to work hard even when I don’t enjoy what I’m doing'. When assessing narcissism, respondents indicated how true statements such as 'I tend to seek prestige or status' were for them. A 7-point Likert scale was also used, where 1 represented 'strongly disagree' and 7 represented 'strongly agree.'
After analysing the data, the researchers concluded that there was a positive relationship between business model innovation and young firm performance. This finding supports the resource-based view of firms, which suggests that organisations can achieve a competitive advantage through the development of unique resources and capabilities, including innovations.
At the same time, the workaholism and narcissism of the founder have a reinforcing effect on the positive impact of business model innovation on the young firm performance. These research findings align with the theory of strategic leadership, which states that leaders with a clear vision for their company's development foster innovation and inspire employees to work productively.
'This is an important practical insight for potential investors: a narcissistic and workaholic leader can guide a young firm to success. The key is not to be afraid to innovate and continuously seek unconventional solutions to establish your position in the market,' Galina Shirokova stressed.
The paper was prepared within the framework of the Strategic Project 'Success and Self-Sustainability of the Individual in a Changing World', 'Autonomy and Proactive Behaviour' subproject, implemented as part of the 'Priority 2030' programme.
See also:
Scientists Discover Why Parents May Favour One Child Over Another
An international team that included Prof. Marina Butovskaya from HSE University studied how willing parents are to care for a child depending on the child’s resemblance to them. The researchers found that similarity to the mother or father affects the level of care provided by parents and grandparents differently. Moreover, this relationship varies across Russia, Brazil, and the United States, reflecting deep cultural differences in family structures in these countries. The study's findings have been published in Social Evolution & History.
When a Virus Steps on a Mine: Ancient Mechanism of Infected Cell Self-Destruction Discovered
When a virus enters a cell, it disrupts the cell’s normal functions. It was previously believed that the cell's protective response to the virus triggered cellular self-destruction. However, a study involving bioinformatics researchers at HSE University has revealed a different mechanism: the cell does not react to the virus itself but to its own transcripts, which become abnormally long. The study has been published in Nature.
Researchers Identify Link between Bilingualism and Cognitive Efficiency
An international team of researchers, including scholars from HSE University, has discovered that knowledge of a foreign language can improve memory performance and increase automaticity when solving complex tasks. The higher a person’s language proficiency, the stronger the effect. The results have been published in the journal Brain and Cognition.
Artificial Intelligence Transforms Employment in Russian Companies
Russian enterprises rank among the world’s top ten leaders in AI adoption. In 2023, nearly one-third of domestic companies reported using artificial intelligence. According to a new study by Larisa Smirnykh, Professor at the HSE Faculty of Economic Sciences, the impact of digitalisation on employment is uneven: while the introduction of AI in small and large enterprises led to a reduction in the number of employees, in medium-sized companies, on the contrary, it contributed to job growth. The article has been published in Voprosy Ekonomiki.
Lost Signal: How Solar Activity Silenced Earth's Radiation
Researchers from HSE University and the Space Research Institute of the Russian Academy of Sciences analysed seven years of data from the ERG (Arase) satellite and, for the first time, provided a detailed description of a new type of radio emission from near-Earth space—the hectometric continuum, first discovered in 2017. The researchers found that this radiation appears a few hours after sunset and disappears one to three hours after sunrise. It was most frequently observed during the summer months and less often in spring and autumn. However, by mid-2022, when the Sun entered a phase of increased activity, the radiation had completely vanished—though the scientists believe the signal may reappear in the future. The study has been published in the Journal of Geophysical Research: Space Physics.
Banking Crises Drive Biodiversity Loss
Economists from HSE University, MGIMO University, and Bocconi University have found that financial crises have a significant negative impact on biodiversity and the environment. This relationship appears to be bi-directional: as global biodiversity declines, the likelihood of new crises increases. The study examines the status of populations encompassing thousands of species worldwide over the past 50 years. The article has been published in Economics Letters, an international journal.
Scientists Discover That the Brain Responds to Others’ Actions as if They Were Its Own
When we watch someone move their finger, our brain doesn’t remain passive. Research conducted by scientists from HSE University and Lausanne University Hospital shows that observing movement activates the motor cortex as if we were performing the action ourselves—while simultaneously ‘silencing’ unnecessary muscles. The findings were published in Scientific Reports.
Russian Scientists Investigate Age-Related Differences in Brain Damage Volume Following Childhood Stroke
A team of Russian scientists and clinicians, including Sofya Kulikova from HSE University in Perm, compared the extent and characteristics of brain damage in children who experienced a stroke either within the first four weeks of life or before the age of two. The researchers found that the younger the child, the more extensive the brain damage—particularly in the frontal and parietal lobes, which are responsible for movement, language, and thinking. The study, published in Neuroscience and Behavioral Physiology, provides insights into how age can influence the nature and extent of brain lesions and lays the groundwork for developing personalised rehabilitation programmes for children who experience a stroke early in life.
Scientists Test Asymmetry Between Matter and Antimatter
An international team, including scientists from HSE University, has collected and analysed data from dozens of experiments on charm mixing—the process in which an unstable charm meson oscillates between its particle and antiparticle states. These oscillations were observed only four times per thousand decays, fully consistent with the predictions of the Standard Model. This indicates that no signs of new physics have yet been detected in these processes, and if unknown particles do exist, they are likely too heavy to be observed with current equipment. The paper has been published in Physical Review D.
HSE Scientists Reveal What Drives Public Trust in Science
Researchers at HSE ISSEK have analysed the level of trust in scientific knowledge in Russian society and the factors shaping attitudes and perceptions. It was found that trust in science depends more on everyday experience, social expectations, and the perceived promises of science than on objective knowledge. The article has been published in Universe of Russia.