From stigma to strategy: unpacking the roles of narcissism and humility in entrepreneurs’ responses to failure and CSR engagement

The failure of entrepreneurial endeavors presents a formidable challenge for entrepreneurs, with the associated stigma exerting multifaceted effects. Grounded in the proactive motivation model and the value-centered approach to institutional corporate social responsibility (CSR) research, this paper investigates the intricate interplay between the stigma of entrepreneurial failure and venture choice of CSR activities from the perspective of entrepreneurial failure learning. Leveraging multi-time questionnaire data from 277 entrepreneurs and employing both regression analysis and fuzzy-set qualitative comparative analysis (fsQCA), this study reveals that the stigma of entrepreneurial failure diminishes CSR by impeding entrepreneurial failure learning. Notably, entrepreneurial narcissism serves to ameliorate the detrimental impact of failure stigma on entrepreneurs’ receptiveness to learning from failure, while entrepreneurial humility exacerbates this process. By discerning diverse configurations leading to high and non-high levels of CSR, fsQCA elucidates the nuanced relationships between the antecedent conditions and CSR. This study contributes to the understanding of entrepreneurial behavior under conditions of stigma by examining how learning from failure shapes responses to negative external feedback. It explores the dynamic interaction between entrepreneurial activities and the institutional environment, and offers insights to help entrepreneurs adopt more constructive approaches to external challenges.