If you go for a harder compound tyre, you get low rolling resistance. Which means, they are easy to spin at the cost of reduced grip. A softer compound will grip the road well at the cost of slightly reduced fuel efficiency. As the contact patch increases, the same thing happens; you increase grip and fuel efficiency reduces.
There are extremes on both ends of the spectrum; the key is to find a balance.
You've chosen a good tyre size for the upgrade but you could face problems with the increase in the overall diameter of the tyre. The speedometer and the odometer could also be affected. As you increase the width, you'll have to decrease the sidewall. 175/60 R14 will be closer to the stock tyre circumference but because of its weird combination, it's very rare tyre spec and not easy to come by.
I'd advise you to stick with the factory spec and choose a softer tyre to improve the grip and handling. Here are some options:
165/65 R14 Earth 1 is a very quiet tyre with grip levels better than the factory fit tyres.