Abstract

The current study has two main aims: to investigate to what extent Emotional Intelligence (EI) of managers of SMEs can be shown to affect employee turnover and Job satisfaction in Saudi SMEs and to examine the role of leader- member exchange (LMX) as a mediator between EI and turnover and Job satisfaction. a questionnaire was used to collect data to a random sample of employees in Saudi SMEs. 169 responses from employees of Saudi SMEs were collected and examined by using structural equation modelling (SEM). The present study’s results revealed a positive relationship between emotional intelligence and LMX. Further, a negative relationship was found between perceived emotional intelligence and employee intention to leave, which suggests that emotional intelligence has a role in retaining employees and reducing their desire to leave. In addition, a positive relationship was found between emotional intelligence and job satisfaction. However, the results did not support a hypothesised interaction between LMX and turnover intention. Last, LMX was found to mediate the relationship between emotional intelligence and job satisfaction, but not the relationship between emotional intelligence and turnover intention

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