Impact of Emotional Intelligence and Leadership on Employee Outcomes in Greek SMEs

Abstract

Small and medium-sized enterprises (SMEs) make up the majority of businesses in Greece and contribute significantly to its economy. The ever-changing business environment puts pressure on employees and leaders to respond to its demands. Employees and leaders influence each other through the expression of their emotions. The main objectives of this study focused on identifying the components of employees’ emotional intelligence (EI), leaders’ leadership style, and the effect of leaders’ EI on employees’ outcomes such as team collaboration, effective communication, job satisfaction, commitment, performance and resilience. The effect of demographic characteristics on EI was examined, too. A quantitative survey was distributed across Greek SMEs with a sample of 102 participants. The findings indicated that self-awareness and self-regulation outweighed the other components of employees’ ΕΙ, while the participative and humanistic leadership styles prevailed over the visionary style of leaders. Leaders’ EI had a positive effect on the examined employees’ outcomes. Almost all demographic characteristics had no statistically significant effect on EI. The empirical data from the research in this specific geographic and organizational context will enrich the literature review, while the study of the impact of ΕΙ and leadership on employees’ outcomes will help raise awareness of this relationship and facilitate future investment in its enhancement.