Abstract

Purpose - The main purpose of this study is to reveal the certain effects of emotional intelligence together with the learning capability, in product innovativeness which is the result of R&D process and known as IQ-dominant field, since innovation and new product development are extremely critical for economies to increase the amount of value-added goods and services. We propose that emotional capability of an organization influences product innovativeness via team performance, which is affected by learning capability. Methodology - This study used field survey data from a sample of 813 participants from 187 R&D teams in 160 firms. The collected data from questionnaires were analyzed with SPSS and AMOS software programs. Findings- Research findings indicated that firm learning capability mediated the relationship between firm emotional capability and team performance. In addition, findings also showed that team performance, which is influenced by emotional capability and learning capability, has an impact on firm product innovativeness. Conclusion- When considering the business management requirements of the twenty-first century, it is no longer enough to have employees with high level intelligence quotient (IQ) or merely improved technical and reasoning competence for a competent and productive work with customer satisfaction. In the meantime, it is necessary to have employees who are aware of their feelings and also who can control them and understand the other people’s feelings, namely employees who have emotionally and socially high capacity.

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