Enhancing Organizational Competitiveness: The Role of Emotional Intelligence and Analytical Skills

11 February, 2024

In today's fast-paced and competitive business landscape, continuous improvement and innovation are crucial for the success of nations, sectors, and organizations. The manufacturing sector, in particular, plays a vital role in driving global economic growth. To remain competitive, organizations must invest in their human capital (HC) and develop key skills. In this blog post, we'll explore the significance of emotional intelligence (EI) and analytical skills (AS) in enhancing organizational competitiveness. We'll delve into the literature on these topics, discuss the impact of the COVID-19 pandemic, and examine the relationship between EI, AS, and organizational culture (OC).

Emotional Intelligence and Competitiveness

Emotional intelligence refers to an individual's ability to perceive, understand, regulate, and express emotions in themselves and others. It plays a crucial role in the work context, enabling employees to effectively cope with environmental pressures. Studies have shown that EI positively affects organizational culture and competitiveness. By managing emotions, individuals can improve their performance and contribute to the overall success of the organization.

Analytical Skills and Organizational Competitiveness

Analytical skills encompass an employee's ability to acquire, develop, and use knowledge about an organization's resources, processes, and procedures. These skills are essential in problem-solving and decision-making, allowing organizations to perceive and shape opportunities, seize them, and maintain a competitive advantage. Research has consistently shown a positive relationship between analytical skills and organizational performance. By developing and utilizing these skills, employees can contribute to the overall competitiveness of the organization.

The Impact of the COVID-19 Pandemic

The COVID-19 pandemic brought about significant changes in the business world, creating uncertainty and complexity. To adapt to the new normal, organizations accelerated their digital transformation efforts, which led to the development of employees' technological skills. However, research has also highlighted the importance of emotional intelligence during this crisis. Employees with high emotional intelligence were better able to cope with the challenges posed by the pandemic, leading to improved well-being and performance.

The Relationship between Emotional Intelligence, Analytical Skills, and Organizational Culture

While previous studies have individually explored the relationship between emotional intelligence or analytical skills and organizational culture, there is a gap in the literature when it comes to examining these two factors simultaneously. This blog post aims to fill this gap by investigating the broader context of Toyota Kata (TK) and Quality 4.0 (Q4.0), which integrate emotional intelligence and analytical skills. By answering the research questions posed, this study contributes to a better understanding of how EI and AS influence OC in the context of TK, IK, and I4.0/Q4.0.

Methodology and Findings

To answer the research questions, a quantitative, nonexperimental, cross-sectional study was conducted in the Tier 1 automotive parts supply industry (T1APSI) in Mexico. A survey questionnaire was administered to employees in NL and Queretaro, with a focus on EI, AS, and OC. The findings revealed a positive relationship between emotional intelligence and organizational culture (β 1 = 0.347, p < 0.05) and between analytical skills and organizational culture (β 2 = 0.426, p < 0.05). These results support the hypotheses and highlight the importance of EI and AS in enhancing organizational competitiveness.

Implications and Future Research

The findings of this study have both theoretical and practical implications. From a theoretical perspective, the study contributes to the literature on emotional intelligence, analytical skills, and HC by establishing a better understanding of their relationship with organizational culture. Practically, the results are relevant to managers in the T1APSI, OEMs, and educational institutions. By recognizing the significance of EI and AS, organizations can develop strategies to strengthen their OC and improve competitiveness. Future studies can further explore the mediating effects of DC, IK, TK, and Q4.0 on the variables included in this study, as well as examine additional HC factors, SS, and HS to enhance the model's comprehensiveness.

Conclusion

In conclusion, emotional intelligence and analytical skills are crucial factors that contribute to organizational competitiveness. By developing these skills in employees, organizations can improve their performance, adapt to changing business environments, and drive innovation. The findings of this study emphasize the importance of investing in HC and integrating emotional intelligence and analytical skills into organizational strategies. As the business landscape continues to evolve, organizations must prioritize the development of these skills to stay ahead in the competitive market.

Reference

Ríos-Hernández A.; Mendoza-Gómez J.; Valdez–de la Rosa L.M. (2023). Emotional intelligence and analytical skill as human capital factors influencing competitiveness through analysis of Toyota Kata, Kaizen and Quality 4.0: empirical study conducted during COVID-19. TQM Journal, (), -, DOI: 10.1108/TQM-05-2023-0129.

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