ORGANIZATIONAL EMOTIONAL INTELLIGENCE AND PERFORMANCE: AN EMPIRICAL STUDY

In this chapter, we extend existing models of individual and collective emotional intelligence to the organizational level and provide an empirical study on the performance impact of organizational emotional intelligence. We propose that organizational emotional intelligence is composed of the average level of individual emotional intelligence of organization members and the collectively shared emotionally intelligent norms, values, and behaviors that shape their interaction. Across 156 organizations, we demonstrate sufficient within-organization consistency and between-organization difference to consider emotional intelligence a collective organizational characteristic. In addition, we show that the level of organizational emotional intelligence is positively associated with operational performance, financial performance, and innovation performance, and negatively associated with involuntary absence. Thus, organizational emotional intelligence can be considered a valuable asset for organizations.