This section presents the findings, which shows the influence of top-level management traits on top-level management abilities, i.e. networking ability and creativity, and eventually organisational resilience. This study determines that both traits can lead to a resilient company.
However, the use of the abilities differs for each top-level management trait. Additionally, this research identified ten overarching themes of abilities within a resilient firm, which describes the influence of top-level management traits. Finally, these findings will answer the propositions made.
Organisational resilience
All surveyed top-level managers had to deal with a significant loss of turnover. However, the firms of interviewed managers differ between various phases of recovery. Lengnick-Hall and Beck (2005) explain that organisational resilience follows a particular set of activities whereby (1) experience is gained of the changing environment and uncertainty, (2) routines are executed to avoid the increased uncertainty and complexity, and (3) organisational outcomes and performance consequences are realised. Therefore, explaining the phase of recovery helps to pinpoint these activities. The phases that have been identified are (1) new firm, (2) recovered, (3) initiating, and (4) preparing. An overview of the firm’s phase is summarised in table 4.1, the phases of recovery.
First, the “new firm” phase means that the top-level managers have started a new firm during COVID-19. In these cases, this does not mean that the other company has ceased to exist, but that the top-level manager saw a business opportunity that could bring desired rents. Following the set of activities from Lengnick-Hall and Beck (2005) this could be identified as
“organisational outcomes and performance of a resilient firm are realised”. Two of eight interviewees were in this phase and have gained the experience, transforming this into a new concept, and routines were executed to avoid the increased uncertainty and complexity, finally leading to organisational outcomes and performance of a resilient firm. The two interviewed in this phase have recovered and achieved the desired rents. Mr G explains:
“We were constantly talking about what's going on. well, of course you saw that home delivery went through the roof. Everyone started to order food, restaurants were closed, and then we thought: we have a warehouse, our meat production, and we can register very easily
on Thuisbezorgd. Really becoming a serious organisation now with 15 to 20 people walking around in the kitchens, that will be a whole different thing. It will really be a kind of next level
for us.”
Second, the “recovered” phase means that the firm has returned to its pre-COVID-19 sales level. Also, in this phase, two of the three sets of activities were passed and could be identified as “organisational outcomes and performance of a resilient firm are realised”. The example of Mrs H endorses this because showing that the experience of the uncertainty (i.e. face-to-face incompany training is no longer possible) has led to the use of their routines to avoid the uncertainty (i.e. offering online training for individuals), and the firm returned to pre-COVID-19 sales levels. This was probably not the case without COVID-pre-COVID-19. Mrs H explains this as follows:
“Of course, the online provision of the training courses and the fact that we have also made it possible for individual registrants to register, so for a long time we only did
business-to-business and in-company training, we have now started to offer individual workshops as well, which would not have happened without COVID-19, so to speak.”
Third, the “initiatives” phase means that top-level management tries to reach the level before COVID-19 with new strategic initiatives. Firms in this phase use their routines to avoid the uncertainty and complexity of the new situations but did not reach the third set of realising a resilient firm's organisational outcome and performance. Mr D gave an excellent example of a new strategic initiative that was successful:
“We had 500 Christmas hampers in previous years, but then we were busy, and it didn't stand out. Now we had nothing else to do, and we gave up gas and then suddenly we had
3000, yes, but can't we just make ten thousand and that's not possible in a normal organisation, so you go and do it somewhere else, but COVID-19 made sure that we saw that
we could sell much more.”
Finally, the “preparation” phase includes firms that are not yet able to make a full recovery due to restrictions. The government created these restrictions and were outside the firm’s influence. The “preparation” phase transitions the first set of activities into the second. Firms in this phase gained the experience and transformed this into a first-mover advantage. However, the execution of these routines is not done yet. In other words, top-level management focuses on making process improvements and exploring new opportunities to boost the firm after the restrictions have been lifted. These will give the firm a first-mover advantage. The explanation of Mr E is apt:
“I think that the things that we have set up and which we are still working on would normally have taken two and a half years, which is why I am so confident in saying that, yes, I
really believe that we have things that will soon be unique.”
Resilient firms can be flexible and, at the same time, stable. All the interviewees mentioned a clear vision, which indicates stability. On the other hand, the interviewees explain a shift in resources or processes within the firm, which means flexibility. This flexibility is indicated by the quotes of Mr D, Mr E and Mrs H above. Although it varies from interviewee to interviewee, it can be stated that it has led to smaller losses and faster recovery, improved viability, fostered curiosity and led to new opportunities.
Table 4.1 Phases of recovery
Interviewee Phase
Mr A New firm
Mr G New firm
Mr C Preparing
Mr I Preparing
Mr E Preparing
Mrs F Initiating
Mr D Initiating
Mrs H Recovered
Top-level management networking abilities and creativity
According to Seville (2017) network, networking ability is significant for resilient firms.
Network ability is described as making a connection and maintaining relationships. This ability is reflected by the interviewees, eight of eight endorse networking abilities as something they used. However, the level of the networking abilities differs. Four of eight explains that their networking abilities helped them recover but were convinced that they recovered without their network. Mr I said this effectively:
“We are also entrepreneurs to stand on our own feet. I have to say that if there was no network, you might have chosen a different path, and it might have taken a bit longer or produced a bit less. But I mean, in the end, I'm convinced that it would have worked again
without a network, yes it makes it easier.”
This quote demonstrates that networking abilities make a faster recovery possible. However, this also highlights the perseverance of the interviewee, which is a hint of narcissistic behaviour of "don't let others tear you down" (Back et al., 2013). On the other hand, networking abilities prove that firms become resilient. Indeed, expanding one's network ensures faster recovery, as Mrs H explains:
“That was not my existing network but rather expanding the network with people I did not know yet, which has helped me see progress in my firm again.”
However, Mrs H is an exception as all other interviewees did not reveal this. This could be why her firm is in the “recovered” phase while the others are working on their recovery.
However, some firms could not do business due to restrictions or start a new firm with more potential, which cannot be determined with certainty.
In addition, DesJardine et al. (2019) denote that a solid pre-existing network helps build financial reserves. The interviews did not reveal this, but findings showed that a solid pre-existing network could be an accelerator for recovery. Mr G mentions that the density of their network improves their recovery:
“Actually, we saw in March that it was all over, and then in June, I thought after it was all allowed again a little bit and restrictions were lifted that people started calling again right
away.”
These quotes display that networking ability is vital for organisational resilience. However, networking abilities could play out differently. Some will use it as an accelerator complemented with narcissistic behaviour, whereas others use it for faster recovery by extending their network.
This explains the firm’s stability (i.e. density of network), whereas its flexibility (i.e. expanding their network) thus makes the firm resilient.
Creativity is another ability of resilient firms, as Seville (2017) emphasises. Creativity is one’s ability to develop new ideas, principles, or concepts. Here, the results are mixed. Two of the eight indicate that they possess creativity, while six approach this more from a process perspective. The process perspective often involves taking inspiration, experiences or copying other companies. A clear description of the creative process can be found in the quote from Mr G:
“We were constantly talking about what is possible, what is going on. Of course, everyone started ordering food, and restaurants were closed. Then we thought, well, we have a warehouse, we have our meat production, and we can actually register very easily on
Thuisbezorgd.”
This quote demonstrates that creativity is a continuous process and use input from different participants. Discussing the possibilities have led Mr G to transform their resources into a new concept. Using the firm’s resources and routines by transforming this into a new concept displays that creativity is an essential ability for resilient firms as this is part of the firm’s flexibility.
Top-level management narcissism and empathy
Hambrick and Mason (1984) stated that top-level management traits play a significant role in firms’ outcomes and performance. According to Seville (2017), the empathic behaviour of top-level management is essential to achieving a resilient firm. However, the survey reveals a mixed picture that underlined top-level management also exhibits narcissistic behaviour.
All interviewees have an average level of empathic and narcissistic behaviour. One of the interviewees has a low quotation (24/80) of empathic behaviour, and one has a high quotation (51/80). This is the same for narcissism, where one of the interviewees had a low quotation (7/40) of narcissistic behaviour, and one had a high quotation (32/40).
Noteworthy, the interviewee with the highest quotation for empathy was in the “recovered”
phase. In contrast, one of the interviewees that were in the “new firm” phase, which is the same set of activities of resilient firms, shows the highest quotation of narcissism. This implies that not only empathic behaviour can lead to a resilient firm, also narcissistic behaviour. However, Mrs H, the one with the highest empathy quotation, even displays narcissistic behaviour. This quote of Mrs H endorse hints of narcissistic behaviour:
“Oh god, in the corona crisis I was wondering, should I close my doors. This is not going to happen to me.”
Mrs H shows a “frightening fear of failure” in this quote. She also indicates attention-seeking behaviour as she tells her story in a financial newspaper. On the other hand, the findings suggest the interviewee's same sort of behaviour with the highest quotation of narcissism. He also demonstrates hints of empathic behaviour. For example, Mr G’s expressions that belong more to empathetic behaviour:
“Well, as a manager, I think I am really a people manager. I actually always try to work with people together.”
“We are really going for it for the long-term, and I also notice that it really helps again in the relationship.”
In contrast, this study does not substantiate Seville’s findings (2017) that empathic behaviour is essential for resilient firms. This study demonstrates both the interviewees' empathic and narcissistic behaviour, while all those interviewed are resilient firms. An overview of the quotations is found in table 4.2.
Table 4.2 Overview quotations of empathy and narcissism per interviewee
Interviewee Quotation empathy
Out of 80
Quotation narcissism Out of 40
Mr A 34 10
Mr G 37 32
Mr C 40 18
Mr I 24 7
Mr E 38 20
Mrs F 37 11
Mr D 43 19
Mrs H 51 16
Interconnectedness between the variables
A firm’s resilience takes place at four dimensions, namely (1) the structure, (2) the processes, (3) the resources and (4) learning capacity. A total of ten themes were discovered within the four dimensions of resilient firms, which explain why managers can demonstrate different traits. As indicated, top-level management display both traits. For example, Mrs H appears to have a “frightening fear of failure” (more narcissistic behaviour) while also showing a collaborative way of working (more empathic behaviour). Another example is that Mrs F exhibits more narcissistic behaviour with her entrepreneurial orientation and clear vision.
Entrepreneurial orientation and a clear vision are two components of narcissistic behaviour because they align with seeing the big picture and the drive to leave a legacy (Maccoby, 1999).
She puts it as follows:
“But most importantly, I am the very driven type who needs creativity, which is why I became an entrepreneur. I really want to achieve 100% of something. I didn't put my name so big on
the car for nothing.”
This drive is closely associated with narcissistic managers who would like to leave a legacy.
Furthermore, Foss (2020) suggests that simplification may be the key to achieving substantial benefits. The simplification of the plans makes it easier for employees to identify with them and propagate them. Leaving a legacy is a simplification of a firm’s strategic plan. Thus, this could explain why Mrs F's firm demonstrate resilience. In addition, top-level managers protect themselves from the “frightening fear of failure” and are willing to make sacrifices to ensure that they succeed. This drive requires a different organisational structure. Because narcissistic behaviour leads to ignoring signals because they believe in their abilities, other control mechanisms are necessary to protect the firm, which makes different abilities necessary. This drive and sacrifices are stressed by Mr A:
“Also, I have eight years of anonymity to build something that I have now, so you should not forget that and then you are not called, and then you have to call 20 times, and you have to explain who you are that I have experienced all that, and now I don't have to explain who I
am that I really had to do eight years of those 14 years and to pull and to ram and standing everywhere and anywhere so yes that has cost me my relationship and the mother of my children so those sacrifices I have made it is not possible if someone says But I am going to
be an entrepreneur well good luck with that.”
This willingness to make sacrifices is typical of narcissistic behaviour because they are self-centred and exploit situations for personal gain. Thus, essential to organise the organisational structure accordingly, whereby the entrepreneurial orientation can reach its full potential. For example, the vision must be propagated, top-level management must have high job autonomy to pursue this ambition, and trial-and-error practice must be demonstrated.
On the other hand, Mrs F shows empathic behaviour by applying scenario planning in her decision-making process, considers collaboration necessary, and, above all, shows modest behaviour. Something a narcissist will not do because of his grandiosity and attention-seeking.
As a result, the organisational structure must be organised and regulated differently. The following quotes highlight this, as Mrs F stresses:
“Working together is really very difficult, so communication is critical, and I always take the time for that. I know very well where I want to go, but this will happen. I have a marketing
lady with whom I'm having a brainstorming session soon, along with two of my make-up artists, and then we’ll brainstorm. How we are going to put this in place so that you get that
full experience again. I am just glad that I have always put my profits before my expenses.”
This collaboration, communication, and scenario plans are typical of empathic behaviour.
For example, collaboration requires trust, support, and forgiveness, something an empathic individual can do. Thus, essential to organise the organisational structure accordingly, whereby collaboration can reach its full potential. For example, the firm’s culture needs to be centred around trust, forgiveness and support, top-level management must have low job autonomy, and a rigid organisational structure needs to be set up.
This demonstrates that the top-level management already exhibits various traits within a resilient firm, thus supporting the proposition that both traits are necessary for resilient firms.
In addition, this implies a constant struggle in the minds of top-level managers. The displayed trait determines the ability and thus the success of the organisational outcome. This supports that both traits (i.e. empathy and narcissism) can create a resilient firm but depends on the display ability. Figure 4.2 depicts this phenomenon. Next, the four propositions of the four dimensions are stressed, supporting these findings.
Figure 4.2 Interaction between trait and dimension of resilience
Structure
The structure of a firm is the way it is organised and regulated. In the first proposition, a distinction is made between empathic top-level management who should organise and regulate a rigid structure with trust, support, forgiveness, and collaboration as centred firm’s culture and narcissistic top-level management have a more open structure with responsibility, reliability and achievement orientated as centred firm’s culture. From the interviews, two themes were discovered within the organisational structure. The first one is entrepreneurial orientation.
According to the findings, this theme describes the strategic policy of the firm and how the firm is organised. Entrepreneurial orientation has three components that play a role in determining success, which is (1) fight-flight-or-freeze modus operandi, (2) sensing market readings and (3) sensing business opportunities. The fight-flight-or-freeze modus operandi describes the view of top-level management. The fight-flight-or-freeze modus operandi is like the psychologic response described by the primal instinct. When cornered, one has three options fight, flight, or freeze. We have heard this modus operandi several times. Mr D says it aptly as:
“There was a need to come up with something because there was less trading, so you had more time, and in that time, you had to come up with something. “
Therefore, this modus operandi is close to the “freighting fear of failure” of narcissistic top-level management. This can also be expressed as no choice; the leader will have to develop something to get back to the level before the rare event. Two other characteristics play a role here that reinforce success, namely sensing market readiness and sensing business opportunities.
Sensing market readiness is the quality of top-level management to know when the market is suitable to enter. A vital ability is then networking abilities. This ability ensures that top-level management sees whether it will succeed. For top-level management, this will mean that they must constantly seek dialogue with the market. A broad and superficial network ensures that top-level management obtains much information to use in the decision-making process. Given
that a comprehensive and superficial network is considered necessary, it is likely that narcissistic top-level management is better at this than their empathic peers. Mr E has aptly told this:
“Because the market is ready.”
“If the market tells us that demand is different, you have to move with it.”
On the other hand, a solid and long-term relationship may reveal opportunities or market readiness. Of course, networking abilities also play a role here. For a long-term relationship, the empathic behaviour of top-level management is essential. In a relationship, trust and warmth are significant to make the connection. This also allows top-level management to gather their information, which benefits decision-making. However, the relationship is essential to be based on honesty and not putting on a show. This gives the relationship a deeper layer and offers opportunities for strategic alliances. Mr G expresses this.
“a piece of product development so that of course it is culinary, but we are also trying in the form of partnership to see if we can't, for example, with a Delft University of Applied Sciences and the technical corner, we can't with them look at what would be the best delivery
units, is that a box to get that burger as warm and as crispy as possible to the customer so that is where we want to go in the future and that is what we are thinking about, but for now it
is indeed a chef who is engaged in product development.”
This can be interpreted that networking abilities are significantly crucial for the entrepreneurial orientation and the way of implementation, therefore, depends on the displayed top-level management trait. Empathic top-level management is thus more likely to seek dialogue with their current customers to find out what the market is ready for and what opportunities are. In contrast, narcissistic top-level management seeks dialogue with potentially promising customers, creating a first-mover advantage with high returns—an exhibit by Mr G.
He has a high quotation for narcissism.
The other theme is the organisational form of control mechanisms that the firm creates.
Three underlying components play a role here, namely (1) task separation, (2) learning on the job and (3) the strive for operational excellence. Control mechanisms play an essential role in regulating the firm and are part of the organisational structure. Task separation creates insights into each other’s responsibilities, and these interdependencies build a firm’s stability. Learning on the job is a control mechanism for creativity and is part of the firm’s culture. Striving for operational excellence is also a control mechanism that improves the firm’s stability. Thus, these three components are a part of the firm’s structure.