Abstract:
Empirical research on firm innovation has provoked mixed reactions from
various scholars in the recent past. The main purpose of this study is to
determine the influence of CEO traits on innovation among financial
institutions in Kenya on the basis of upper echelons and optimism theories.
The study used the design of the explanatory survey. The survey data for
130 stratified financial firms were analysed using both descriptive and
inferential statistics. Regression analysis was used to test the hypothesis. The
findings indicate that the CEO's optimism, humility, and narcissism all had
a positive effect on firm innovation. The consequences are that innovation in
financial institutions is increasing when CEOs are optimistic, humble and
narcissistic. The results suggest that, in order for financial institutions to be
innovative, they need to have the CEOs who are optimistic and who
epitomize visionary objectives to be committed to innovation. Likewise, they
should have CEOs who are humble enough to involve key stakeholders and a
narcissistic CEO who can stand decisively for organizational change in the
form of innovation. This study is important in understanding how the
CEO's personality contributes to firm innovation.
