THE HIGHER THEY RISE, THE HARDER THEY FALL.

In this study we consider the potentially negative consequences for corporate leaders of being subjected to high levels of ingratiation from other managers and board members. We begin by suggesting that CEOs who ascend to positions of higher social status in the corporate elite by acquiring more board appointments become increasingly attractive targets of ingratiation from colleagues. We then address the potentially negative consequences for CEOs of becoming the target of such ingratiation. Our theory suggests how high levels of ingratiation can increase CEOs' overconfidence in their strategic judgment and leadership capability, which results in biased strategic decision making. Specifically, we contend that heightened overconfidence from high levels of ingratiation reduces the likelihood that CEOs will initiate needed strategic change in response to poor firm performance. We then suggest how strategic persistence that results from high levels of ingratiation directed at the CEO can ultimately increase the likelihood of the CEO's dismissal. We test our hypotheses with a unique dataset that includes original survey data from a large-sample of CEOs, other top managers and board members. Implications for theory and research on social influence in the corporate elite and the dynamics of executive careers are discussed. [ABSTRACT FROM AUTHOR]