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International Journal of Academic Research in Business and Social Sciences

Open Access Journal

ISSN: 2222-6990

How Emotional Intelligence Builds Organisational Resilience in Pakistani SMES: Mediating and Moderating Mechanisms

Hamrila Binti Abdul Latif, Suleman Anwar

http://dx.doi.org/10.6007/IJARBSS/v16-i10/29162

Open access

Organisational resilience is crucial for small and medium-sized enterprises (SMEs) in emerging economies that face ongoing economic instability, resource limitations, and environmental disruption. This study aims to find the relationship between Emotional Intelligence (EI) and Organisational Resilience (OR) mediated by Personal Resilience (PR) and moderated by Knowledge Management Practices (KMPs). The data were gathered from 348 senior decision-makers from SMEs in the Golden Triangle of Pakistan and analysed through Partial Least Squares Structural Equation Modelling (PLS-SEM) with the support of Dynamic Capabilities Theory. The results find that EI has a positive influence on PR and PR has a positive influence on OR. The specific indirect effect of EI on OR through PR was also positive and significant, which supports the mediating role of PR. KMPs have positive direct effects on OR, and they moderated the relationship between PR and OR in a negative way, showing that the more KMPs, the less the influence of PR on OR. The study expands the organisational resilience literature by incorporating three factors in the same framework: leadership capability, individual adaptability, and organisational knowledge processes and provides practical implications for enhancing SMEs’ resilience in resource-limited companies.

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