The origin of failure: A multidisciplinary appraisal of the hubris hypothesis and proposed research agenda

Abstract

The hubris hypothesis complements the extant debate on how people make judgments and decisions in organizations. Drawing on the origin of hubris in Greek mythology, the psychological approach, and finance studies, this paper portrays an informed picture of the current status of managerial hubris literature that develops a more advanced understanding of what is known about hubris. We present a conceptual map that provides a comprehensive appreciation of hubris antecedents-symptoms-strategic choices-feedback performance main cause effect relationships. Our proposed conceptual map draws on the idea that managerial hubris is one of the determinants of CEO judgments, strategic choices, and organizational performance. We also show that managerial hubris has a good side and a bad side and identify the implications for strategy formulation and implementation. By doing so, the study not only provides a multidisciplinary introduction to hubris that is tailored to scholars, but also distills a suite of suggestions for managing hubris symptoms and traps that may prove valuable to practitioners.