Middle managers are the critical conduits between top-level strategies and operational execution. Through their divergent strategic conduct, they possess the unique potential to influence strategic direction beyond their integral role of bridging the top management and the frontline staff. This study delves into the intricate interplay of CEO narcissism, organizational identity, and performance feedback and examines how these factors interact to shape middle managers’ divergent strategic behavior. Data from two experimental investigations involving 70 practitioners (Study 1) and 156 middle managers (Study 2) reveal the latent mechanisms through which CEO narcissism permeates an organization, thereby influencing the heterogeneous strategic actions of middle managers. The consistent provision of positive performance feedback can counterbalance the adverse effects of the CEO’s narcissism. Such feedback could reaffirm to middle managers that their contributions are recognized and valued, thereby amplifying their identification with the organization and fostering more innovative ideation. This research enriches the existing literature by probing into the scarcely researched ramifications of CEO narcissism in the context of middle managers’ strategic behavior and furnishes pragmatic insights for cultivating an organizational environment conducive to strategic adaptation and innovation.
