Personality and Crisis Preparedness: The Mediation and Moderation of Narcissistic-Rivalry and Escalation of Commitment

Abstract

Despite extensive research on organizational crises, there is a need for deeper insight into the personalities of managers involved in crisis management and the interplay of personality traits in crisis preparedness. Crisis management (CM) is pivotal in today’s complex and rapidly changing world, involving the strategic process of anticipating, preparing for, and effectively responding to crises that can potentially disrupt an organization. Recent surges in business failures and related corporate crises, along with the varied consequences of COVID-19, emphasize the acute need for effective CM, particularly crisis preparedness (CP). Given that CP in organizations is influenced by various factors, we aimed to develop a model that accurately assesses the impact of individual and situational aspects on CP, drawing on crisis management theory and trait theory as the overarching theoretical basis. Based on a sample of 314 executives and utilizing moderation-mediation analysis, our main findings reveal that narcissistic rivalry fully mediates the positive relationship between conscientiousness and CP. Additionally, Escalation of Commitment (EoC) moderated the relationship between conscientiousness and narcissistic rivalry, such that managers with high conscientiousness disposed to EoC show a desirable low level of rivalry. In conclusion, while EoC is typically viewed as a negative organizational trait, organizations are advised to prioritize hiring conscientious managers who exhibit a propensity for EoC, provided that the organization can effectively manage this tendency. By taking the proper steps, organizations can benefit from the advantages of managers disposed to EoC while reducing crisis risks.