THE ROLE OF INSTITUTIONAL ENVIRONMENT AND INDIVIDUAL SKILLS OF LEADERS ON EMOTIONAL INTELLIGENCE FOR PERFORMANCE

E.  MAKINDE; O. A. AKINTUNDE

E. MAKINDE University of Lagos
O. A. AKINTUNDE University of Lagos

Keywords: Institutional environment, Leadership Skills, Emotional intelligence, Leadership Style, Organisational Culture

Abstract

Emotional Intelligence (EI) is an essential factor for enhancing performance in the contemporary business world. It has been extensively researched in various fields of knowledge. This paper presents a Systematic Literature Review (SLR) of 13 peer-reviewed articles and reviews on emotional intelligence, leadership skills, institutional environment and performance from 2020 to 2024. The review aims to explore the role of institutional environment and individual skills in the utilisation of emotional intelligence for performance enhancement. The study reveals that the institutional environment plays a crucial role in utilising emotional intelligence for performance enhancement by fostering cohesive teams and loyalty, reducing employee turnover, nurturing a diverse climate, and promoting innovation capabilities. Leveraging emotional intelligence in such an environment, organisations can enhance both individual and organisational performance. Moreover, the study highlights that individual leadership skills are crucial in utilising emotional intelligence effectively to achieve performance outcomes in organisations, by effective communication, decision-making and conflict resolution, and empathy skills. With effective leadership skills, leaders can inspire and empower their teams, resulting in increased productivity, innovation, and overall increased performance. The finding of the study also underscores that institutional environment and individual leadership skills positively shape emotional intelligence utilisation, particularly when the environment is supportive. In challenging environments, leaders with effective leadership skills can still leverage the utilisation of emotional intelligence to navigate uncertainties, resolve conflicts, and foster resilience among team members. Therefore, investing in leadership development programs that emphasise emotional intelligence can yield substantial benefits in today's dynamic business landscape.