Emotional intelligence and competitive advantage: examining the relationship from a resource-based view

Leaders have an essential role in facilitating strategic change within organizations. As resistance to change is primarily an emotional reaction to change, the study of emotions and the emotional intelligence of the leader is of growing interest in modern organizations. From a strategic perspective, the process of how the emotional intelligence of a leader contributes to competitive advantage for an organization is unclear. Based on the resource-based view of the firm, this paper introduces a framework that links emotional intelligence to competitive advantage. Essentially, it is argued that emotional intelligence leads indirectly to competitive advantage by influencing the leadership capability necessary for implementing effective strategic change. In the current volatile business environment, it is argued that organizations possessing emotionally intelligent leaders will be more likely to obtain competitive advantage. Suggestions for organizations are discussed and directions for future research are also presented. Copyright © 2004 John Wiley & Sons, Ltd.