The Dark Side of Leadership: Towards a Mid‐Range Theory of Hubris and Greed in Entrepreneurial Contexts

ABSTRACT Much of the research on entrepreneurial behaviour and leadership has emphasized their importance and potentially valuable outcomes, along with the challenges involved in each. Although entrepreneurial activities are essential in all types of organizations, this research focuses on the potential dark side of strategic leaders. Specifically, we examine the potential for and the outcomes of the display of greed and hubris in different entrepreneurial contexts. We present a theoretical model of moderated mediation, focused on the effects of greedy and hubristic behaviour by entrepreneurial leaders on the firm's human and social capital, and consequently venture success. However, the negative relationship manifests differently in the presence of certain firm‐level characteristics. We examine the implications of the dark side of entrepreneurial leadership and recommend several avenues for future research. In so doing, this work contributes to the development of a mid‐range theory of the dark side of entrepreneurial leadership.