Impact of emotional intelligence on strategic management of technology and organizational performance in the banking sector in Sri Lanka

Abstract

This study investigates the impact of the emotional intelligence on strategic management of technology and the organizational performance of the banking industry in Sri Lanka. The factors related to this are comprised of technology strategy, technological capability and technological knowledge management forming strategic management of technology (SMT) construct; experiential emotional intelligence, strategic emotional intelligence forming emotional intelligence (EI) construct; learning and growth, internal business process, stakeholder satisfaction forming organizational performance construct. A review of the literature was conducted to investigate and analyze the existing literature on managing the technology strategically, emotional intelligence and the performance of the organization. This resulted in the conceptual model and the hypotheses. A questionnaire-based survey was conducted drawing a sample of 1200 managers of seventeen banks in the Western Province which were registered under the Colombo Stock Exchange in order to test the conceptual model and the hypotheses. The data analysis was performed using SMART PLS based SEM technique. The study findings indicate that the suggested model achieved an acceptable fit with the data and the suggested hypothetical paths were significant. The findings provide a board picture of the influence of the emotional intelligence on the relationship between SMT and the performance of the organization. The study found that there is a moderating effect of emotional intelligence on the relationship between the strategic management of technology and the performance of the organization in the sector. Furthermore, it was evident that EI is more influential on the mentioned relationship than the well-established facts in the related literature. Based on the findings, the recommendations have been made in order to increase the performance of the Sri Lankan banking industry.