The link between narcissism and leadership has been discussed since the early days of narcissism research. There has been a long debate about whether narcissism is good or bad for leadership. The answer is that it is probably both. One of the major benefits of narcissism is that it predicts leadership emergence. That is, more narcissistic individuals are likely to rise to leadership positions. They might be a disaster once they get there, unfortunately, but they will rise nonetheless. In a study published this month, leadership emergence was examined in samples of students and executives. Not only did the more narcissistic individuals in the groups see themselves as leaders, but the others in the group (and even observers in one study) saw the narcissistic individuals as leaders. When people seem to rise too easily into leadership positions, we need to be especially vigilant for narcissistic behaviors.
For the full study, see:
Brunell, A. B., Gentry, W. A., Campbell, W. K., Hoffman, B. J., Kuhnert, K. W., & DeMarree, K. G. (2008). Leader emergence: The case of the narcissistic leader. Personality and Social Psychology Bulletin, 34, 1663-1676.