Journal
JOURNAL OF MANAGERIAL PSYCHOLOGY
Volume 23, Issue 2, Pages 186-203Publisher
EMERALD GROUP PUBLISHING LTD
DOI: 10.1108/02683940810850817
Keywords
emotional intelligence; organizational performance; leadership; human resource management; Canada
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Purpose - The purpose of this study is to investigate whether and how leadership practices that facilitate a positive emotional climate (the PEC practices) are related to organizational outcomes in terms of performance (increase in revenue), strategic growth, and outcome growth. Design/methodology/approach - A panel study was conducted to test the hypotheses. Data were collected from 229 entrepreneurs and small business owners operating in Greater Vancouver, British Columbia, Canada. In the first wave of the study, the authors collected data regarding the PEC practices. The data on outcome variables, i.e. revenue, strategic growth, and outcome growth, were collected in the second wave, 18 months later. Findings - The regression analyses showed that the PEC practices were positively related to company performance, revenue growth, and outcome growth, providing support for the hypotheses in the study. Originality/value - This study provides valuable insights about the role of emotional factors in organizational-level outcomes, a relatively unexplored area in emotions research. Analyzing a set of panel data, the study has shown that leadership practices that facilitate a positive emotional climate in an organization make a difference in organizational-level outcomes.
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