Personality and psychological capital of top managers as key drivers of company performance and overall success

Recently, rising attention has been paid to company leadership due to the notion that managers play a crucial role in a company’s success. Not only are chief executive officers (CEO) the spearhead of a company, but as role models they are also critical individuals who are held responsible for corporate success. It is their obligation to communicate essential business objectives, manage the corporate culture, connect with shareholders and preserve a company’s reputation. Therefore, the personality and psychological capital of a CEO plays a vital role in determining both their own as well as the company’s success.

In our study, we propose the existence of a specific set of personality traits held by successful CEOs. Additionally, we assume that manager personalities differ depending on the industry. A previous study has already shown that successful CEOs have relatively homogeneous personalities and that, for example, CEOs of service firms differ to some extent from CEOs of manufacturing firms.

Our research will address the differences between personalities of successful managers and those of less successful ones with regard to both corporate success as well as investors’ and employees’ satisfaction in order to obtain practical implications for the selection of managers. The results will provide a set of personality traits that can serve as selection criteria for top managers.