Emotional Intelligence and Employee Performance in Ghanaian SMES: The role of Job Satisfaction and Transformational Leadership

Abstract

The study explores the impact of Emotional Intelligence on Employee Performance among Ghanaian Small and Medium-sized Enterprises (SMEs) with the moderating role of Job Satisfaction and Transformational Leadership. The study adopted a quantitative research approach with an explanatory cross-sectional design, using a structured questionnaire to collect data. A sample of 590 respondents was surveyed, with 530 valid responses obtained. Data were analyzed using Partial Least Squares Structural Equation Modelling. The findings reveal that both Emotional Intelligence and Job Satisfaction have a positive and statistically significant effect on Employee Performance, confirming that employees with higher emotional intelligence and greater job satisfaction tend to perform better. However, the study also found that the interaction between Emotional Intelligence and Job Satisfaction and Emotional Intelligence and Transformational Leadership did not significantly increase employee performance. Based on these findings, the study recommends that SMEs invest their time and resources in emotional intelligence development programs and focus on providing job satisfaction to improve performance. In conclusion, although Emotional Intelligence, Job Satisfaction, and Transformational Leadership are important contributors to employee performance, their interaction does not necessarily lead to better outcomes, highlighting the need for a more nuanced approach to performance management in SMEs.