Fairbairn's work - even more than Kernberg's, not to mention Kohut's - integrates all these insights into a coherent framework. Guntrip elaborated on it and together they created one of the most impressive theoretical bodies in the history of psychology.
Fairbairn internalised Klein's insights that drives are object-orientated and their goal is the formation of relationships and not primarily the attainment of pleasure. Pleasurable sensations are the means to achieve relationships. The Ego does not seek to be stimulated and pleased but to find the right, "good", supporting object.
The infant is fused with his Primary Object, the mother. Life is not about using objects for pleasure under the supervision of the Ego and Superego, as Freud postulated. Life is about separating, differentiating, achieving independence from the Primary Object and the initial state of fusion with it. Dependence on internal objects is narcissism. Freud's post-narcissistic (anaclitic) phase of life can be either dependent (immature) or mature.
The newborn's Ego is looking for objects with which to form relationships. Inevitably, some of these objects and some of these relationships frustrate the infant and disappoint him. He compensates for these setbacks by creating compensatory internal objects. The initially unitary Ego thus fragments into a growing group of internal objects. Reality breaks our hearts and minds, according to Fairbairn. The Ego and its objects are "twinned" and the Ego is split in three [Guntrip added a fourth Ego]. A schizoid state ensues.
The "original" (Freudian or libidinal) Ego is unitary, instinctual, needy and object seeking. It then fragments as a result of the three typical interactions with the mother (gratification, disappointment and deprivation). The central Ego idealises the "good" parents. It is conformist and obedient. The antilibidinal Ego is a reaction to frustrations. It is rejecting, harsh, unsatisfying, against natural needs. The libidinal Ego is the seat of cravings, desires and needs. It is active in that it keeps seeking objects to form relationships with. Guntrip added the regressed Ego, which is the True Self in "cold storage", the "lost heart of the personal self".
Fairbairn's definition of psychopathology is quantitative. Which parts of the Ego are dedicated to relationships with internal objects rather than with external ones (e.g., real people)? In other words: how fragmented (=how schizoid) is the Ego?
To achieve a successful transition from internal objects to external ones - the child needs the right parents (in Winnicott parlance, the "good enough mother" - not perfect, but "good enough"). The child internalises the bad aspects of his parents in the form of internal, bad objects and then proceeds to suppress them, together ("twinned") with portions of his Ego. Thus, his parents become PART of the child (though a repressed part). The more bad objects are repressed, the "less Ego is left" for healthy relationships with external objects. To Fairbairn, the source of all psychological disturbances is in these schizoid phenomena. Later developments (such as the Oedipus Complex) are less crucial. Fairbairn and Guntrip think that if a person is too attached to his compensatory internal objects - he finds it hard to mature psychologically. Maturing is about letting go of internal objects. Some people just don't want to mature, or are reluctant to do so, or are ambivalent about it. This reluctance, this withdrawal to an internal world of representations, internal objects and broken Ego - is narcissism itself. Narcissists simply don't know how to be themselves, how to acquire independence and, simultaneously manage their relationships with other people.
Both Otto Kernberg and Franz Kohut agreed that narcissism is between neurosis and psychosis. Kernberg thought that it was a borderline phenomenon, on the verge of psychosis (where the Ego is completely shattered). In this respect Kernberg, more than Kohut, identifies narcissism with schizoid phenomena and with schizophrenia. This is not the only difference between them. They also disagree on the developmental locus of narcissism. Kohut thinks that narcissism is an early phase of development, fossilised, forever to be repeated (gigantic repetition complex) while Kernberg maintains that the narcissistic self is pathological from its very inception. Kohut believes that the narcissist's parents provided him with no assurances that he does possess a self (in his words, with no self-object). They did not explicitly recognise the child's nascent self, its separate existence, its boundaries. The child learned to have a schizoid, split, fragmented self - rather than a coherent ad integrated one. To him, narcissism is really all-pervasive, at the very core of being (whether in its mature form, as self-love, or in it regressive, infantile form as a narcissistic disorder).
Kernberg regards "mature narcissism" (also espoused by neo-Freudians like Grunberger and Chasseguet-Smirgel) as a contradiction in terms, an oxymoron. He observes that narcissists are already grandiose and schizoid (detached, cold, aloof, asocial) at an early age (at three years old, according to him!). Like Klein, Kernberg believes that narcissism is a last ditch effort (defence) to halt the emergence of the paranoid-schizoid position described by Klein.
In an adult such an emergence is known as "psychosis" and this is why Kernberg classifies narcissists as borderline (almost) psychotics. Even Kohut, who is an opponent of Kernberg's classification, uses Eugene O'Neill's famous sentence [in "The Great God Brown">[: "Man is born broken. He lives by mending. The grace of God is glue." Kernberg himself sees a clear connection between schizoid phenomena (such as alienation in modern society and subsequent withdrawal) and narcissistic phenomena (inability to form relationships or to make commitments or to empathise).