Emotional intelligence in family firms

Abstract

Purpose – Although researchers have highlighted the importance of relational and family factors for the sustainability of a family firm, there is not much empirical research exploring how emotions and the management of emotions play a role in the interpersonal dynamics of family business owners. The purpose of this paper is to explore how the way family members manage their emotions affects the interpersonal dynamics in the family, business, and ownership subsystems of a family firm. Design/methodology/approach – The paper presents an in-depth case study from a family firm in Colombia-South America. Findings – The results indicate that the capability that family members have to manage their emotions influences the interpersonal dynamics that take place in the family firm at the individual and group level. In this case, the paper found that although emotional intelligence (EI) affected interpersonal relationships in a firm, this effect was based on the individual's willingness to use their EI capabilities, previous history between people, and the goals individuals have within each subsystem in a family firm. The paper also found that interpersonal dynamics, in turn, influence how family members work together. Research limitations/implications – Because this study uses an in-depth case study, the intention of the paper is to provide an initial picture of how EI can play a role in the interpersonal interactions between family business owners. The authors hope that this study can be used as a building block to enhance the understanding of the role of EI in family firms. Practical implications – EI represents an individual's capability to perceive, understand, manage, and regulate self and other's emotions. For family firms, this means that family business owners can use this capability to determine how to enact their roles in the family firm and how to interact with other to ensure harmony in their relationships. Originality/value – This paper builds on previous work on emotions in family firms to explore the role of EI in family firms, and provides an empirical exploration of the role of management of emotions in family firms.

The Psychological Foundations of Management in Family Firms: Emotions, Memories, and Experiences

“…For example, Miao, Humphrey, Qian, and Pollack (2018c) found that emotional intelligence is positively related to entrepreneurial intentions, while Allen, Stevenson, O’Boyle, and Seibert (2020) convincingly demonstrate that emotional intelligence is the most important trait predictor of entrepreneurial success, even more so than cognitive ability or measures of the Big Five personality traits. Although no meta-analysis specifically considers emotional intelligence in family businesses, case studies on family businesses illustrate the many ways that emotional intelligence can benefit family firms (Betancourt, Botero, Ramirez, & Vergara, 2014; Boyatzis & Soler, 2012). Moreover, Shepherd (2009) has convincingly argued that emotional intelligence can help family business members cope with a variety of intense emotions, and can aid grief recovery from the loss of a family business.…”

Microfoundations in Family Firm Research: A Review and Agenda for Theoretically Driven Future Inquiry

“…Some of these studies investigated the effects of personality, in general (Pittino et al, 2017), traits inherited from parents (M. Li & Goetz, 2019), CEO narcissism (Rovelli & Curnis, 2021), and emotional intelligence (Betancourt et al, 2014).…”

Longevity through emotional intelligence: a relationship marketing approach in family businesses

“…As propounded by Hess and Bacigalupo (2010) emotionally intelligent leaders in knowledge-based organisations seek to create environments where employees nurture their creative capabilities which are then utilised efficiently towards the goal attainment of the organisation. G omez Betancourt et al (2014) indicated that family members' capability to manage their emotions influences the interpersonal dynamics in family firms at both group and individual levels.…”

“…The literature on organisational behaviour highlights the fact that management's emotions are influential in the performance of organisations( Gómez Betancourt et al. , 2014, Kotsou et al.…”