The Impact of Emotional Intelligence on Team Effectiveness and Firm Performance: The Case of Top Management Teams

The purpose of this paper is to examine the existing bodies of research on the validity and value of cognitive intelligence and emotional intelligence in relation to top management teams (TMTs) and how those relate to TMT integration and firm performance. The approach of this paper is an aggregation and summary of empirical research to propose a theoretical model of how emotional intelligence directly relates to firm performance. Findings of several researchers show that cognitive intelligence matters to individual performance across the board and that emotional intelligence matters to leadership, team integration, and firm performance in various contexts. Practical implications are higher levels of emotional intelligence lead to high firm performance by augmenting high cognitive intelligence levels that executives already have. The unique context of top management teams provides original insight into the value of high emotional intelligence when trying to achieve TMT integration in order to reach better firm performance. Propositions and future research directions give way to further solidification of the thesis.