Moderating Effect of Emotional Intelligence on Thought Leadership Style and Job Performance of Managers of SME

Abstract

Leadership styles (transactional, transformational, and laissez-faire) and emotional intelligence are considered keys to performance. However, little is known about the effect of a relatively new leadership style (thought leadership) on job performance, with a specific focus on the moderating effect of emotional intelligence on thought leadership and the job performance of managers of SMEs in Ghana. We employed a survey research approach to achieve this objective, specifically targeting managers of SMEs registered with the Registrar-General's Department in Accra. Out of the 500 distributed questionnaires, 480 were returned, and 453 were deemed usable, yielding a response rate of 90.6%. Three hypotheses were tested using partial least squares structural equation modelling (PLS-SEM). The results indicate that thought leadership has a positive and significant effect on job performance. However, the findings also reveal a negative moderating effect of emotional intelligence on the relationship between thought leadership and job performance. These results suggest that while thought leadership enhances job performance, high levels of emotional intelligence may weaken this relationship. Policymakers should incorporate thought leadership into their training policies and programmes to enhance managers' job performance. Additionally, future research should explore specific types of policies that effectively address the moderating role of emotional intelligence on the relationship between thought leadership style and the job performance of managers in SMEs.