Though narcissistic CEOs can be reckless, selfish, and unethical, extant research continues to yield inconsistent findings concerning the impact on firm performance, which may stem from an underestimation of critical differences between the subdimensions of narcissism. I draw on dual process theories of cognition and moral disengagement theory to present an integrative conceptual model outlining how grandiose and vulnerable CEO narcissism relate differently to firm performance, as explained by trait-relevant cognitive processes. Given that new firm creation is particularly attractive to narcissists due to the unique opportunity to satisfy narcissistic needs and expectations, I focus on founding CEOs, who have an outsize impact on financial performance in nascent firms. Across four studies – a time-lagged field study (N = 407), a survey (N = 358), and two randomized experiments (N = 208, 141) – I show that founding CEOs with grandiose narcissism positively relate to firm performance via intuitive thinking, which upholds moral choices. But founding CEOs with vulnerable narcissism are negatively associated with firm performance through deliberative thinking, which activates moral disengagement. Theoretical contributions, practical implications, and promising avenues of future research are discussed.
