The Role of Emotional Intelligence in South African State-Owned Entity Leadership for Sustainable Business Management and Development

Abstract

The State Companies has faced significant challenges attributed to mismanagement and leadership abuses, leading to the disruption of crucial business operations, particularly within supply chain and finance processes, as well as violations of the Public Finance Management Act (PFMA). Furthermore, the organization has experienced a loss of vital expertise, largely due to the repercussions of the COVID-19 pandemic. These issues are intricately intertwined with the emotions of individuals, the caliber of leadership within the organization, and the overall approach to business management. Hence, it becomes imperative to investigate the role of Emotional Intelligence (EI) in the effective governance of this prominent state-owned enterprise. This study adopted a quantitative research approach to explore the intricate relationships among various variables. Utilizing a census sampling method, the research encompassed the entire population (n=130), employing a comprehensive questionnaire consisting of three distinct assessments while adhering to rigorous standards of reliability, validity, and ethical considerations. The findings of this study show the substantial influence of managers' emotional intelligence on the management of business activities within this state-owned entity. Moreover, it was established that demographic factors such as race, age, educational level, and gender did not yield statistically significant variations in emotional intelligence. Nevertheless, the study did identify a certain level of significance regarding the impact of COVID-19 on business management. In light of these findings, it is recommended that the organization institute training programs and departmental sessions focused on enhancing emotional intelligence, thereby fostering greater emotional intelligence insights and practical applications across the organization. Such measures are essential for the organization's sustained growth and development in the pursuit of sustainable business management.