Leader narcissism, perceived leader narcissism, and employee outcomes: The moderating effect of goal congruence

The effects of leader narcissism on employee outcomes have yielded inconsistent results. Scholars suggest that its benefits or costs may depend on situational moderators that explain when and how leaders’ narcissistic traits are activated. In response to this, the present research draws on trait activation theory and proposes that leaders’ perceived goal congruence with their followers can be a situational cue that is likely to activate narcissistic leaders’ behavioral tendencies, as captured by employees’ perceived leader narcissism. We further suggest that employees’ perceived leader narcissism negatively affects their perception of leader effectiveness, employee performance, and employee creativity. Multilevel analysis of multisource and multiwave data collected from 55 leaders and 214 followers support our hypotheses. The results serve as a response to the contradictory findings of the effects of leader narcissism and suggest implications for theory and practice.