Emotional intelligence in family firms: Its impact on interpersonal dynamics in the family, business and ownership systems

• Published in: Journal of family business management 2014-01, Vol.4 (1), p.4-23
• Main Authors: Gómez Betancourt, Gonzalo, C. Botero, Isabel, Bernardo Betancourt Ramirez, Jose, Piedad López Vergara, Maria
• Format: Article
• Language: English
• Subjects: Case studies; Decision making; Emotional intelligence; Emotions; Families & family life; Family owned businesses; Job performance; Organizational behavior
• ISSN: 2043-6238; 2043-6246
• DOI: 10.1108/JFBM-08-2013-0020

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.