Mediating effect of emotional intelligence on the relationship between employee job satisfaction and firm performance of small business

Abstract

Purpose

The aim of this study is to measure the mediating effect of emotional intelligence on job satisfaction and firm performance of small business and to identify the critical success constructs and significant path of emotional intelligence in relation to job satisfaction and firm performance.

Design/methodology/approach

This study provides an analysis of the relevant literature that has been published on the renowned journal of small business. This study’s theoretical framework and constructs were developed based on prior research of emotional intelligence in small business. Along with, data were gathered from 355 respondents, with a valid response rate of 73.95%. This study used the SEM-PLS to measure the validity of the theoretical framework and test the hypothesis.

Findings

This study revealed that infrastructure, leadership and management, salary, working hours, working environment and emotional intelligence are very crucial for job satisfaction and firm performance. Emotional intelligence mediated the relationship between five job satisfaction factors (working hours, organizational infrastructure, leadership and management, working environment, salary and other benefits) and firm performance. Thus, this study can contribute to enhancing firm performance and developing a new dimension of small business.

Research limitations/implications

The result of this study will assist the researchers and service providers in understanding the mediating effect of emotional intelligence on job satisfaction and firm performance of small businesses. Thereby, policy formulation in the era of training of employees, leadership and technology-based services orientation will assist to in enhancing opportunities for small businesses and upholding sustainable business.

Originality/value

To the best of the authors’ knowledge, this study is the first to analyze the link of the mediating effect of emotional intelligence on job satisfaction and firm performance of small business.

Citation

Deb, S.K., Nafi, S.M., Mallik, N. and Valeri, M. (2023), "Mediating effect of emotional intelligence on the relationship between employee job satisfaction and firm performance of small business", European Business Review, Vol. 35 No. 5, pp. 624-651. https://doi.org/10.1108/EBR-12-2022-0249