Extract
The role of emotional intelligence in environmental scanning behavior: a cross-cultural study.
INTRODUCTION
In the rapidly changing global economy, scanning for environmental change is vital to organizational performance and viability. Changes in the environment result in new opportunities for wealth creation that decision makers use in strategy formulation and implementation. Environmental changes increase information processing needs within organizations because managers must detect and interpret problem areas, identify opportunities, and implement strategic adaptations (Hambrick, 1982; Culnan, 1983; Tushman, 1977). A strategic advantage rests upon management's ability to collect pertinent information and act on signals that others miss. Executives are responsible for bringing together specialized information from various departments and functions (Daft, Sormunen, and Parks, 1988). Scanning involves formal and informal sources of information often gained through ad hoc human sources (Thomas, 1980; Hambrick, 1982). Most previous research on scanning has relied on self-report estimates of the frequency of one's search and the source of the information. While this approach has been useful it does not take into account the intense social aspect of effective scanning behavior within firms. Decision makers must work among others to detect, communicate, and politicize information that enters the organization (Mintzberg, 1973). The ability to effectively scan the environment has been linked to new venture creation (Fiet, 2007), reduced strategic uncertainty (Elenkov, 1997), and improved firm performance (Daft et al., 1988). Although these studies exemplify the positive outcomes associated with environmental scanning there is little understanding of how decision makers work among others to effectively scan information for opportunities and threats. If competitors have unequal abilities to bring about or transfer new information, then they differ in their abilities to formulate cogent responses to environmental changes (Hambrick, 1982). If unequal competencies exist in collecting or socializing information, then differences accompanying performance are attributable to the ability to implement a response, that is, to change or modify their strategy. Research shows the transfer of key information is hindered when an arduous relationship exists between the source and the recipient (Szulanski, 1996). We argue a person's ability to exercise emotional intelligence (EQ) influences their ability to work across departments or functions to effectively scan the environment for new opportunities or threats within the social context of established firms. EQ has increasin...See the full content of this document
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