Abstract

Research in the field of entrepreneurship focuses objective characteristics of entrepreneurs that tend to under-represent the role of affects in the entrepreneurial activity (Goss, 2005; Lindgren and Packendorff, 2009). This study seeks to examine the relationship between entrepreneurs’ emotional intelligence, managerial style and the creation of social capital on the one hand and the venture’s performance on the other. Emotional intelligence relates to the ability to identify and express emotions, emotional adjustment and using emotions as self-motivation and a means to motivate others (Mayer and Salovey, 1990; Goleman, 1995). Emotional intelligence is found to be associated with managers’ ability to motivate their followers and with higher performance (Bass and Avolio, 1990; Cherniss, 2001). Moreover, entrepreneurs’ ability to lead is dependent on their authenticity and their ability to communicate and create social capital, viz., an ability to create consistency between their values, actions and words (Wieand, 2002). It is therefore hypothesized that entrepreneurs’ social capital and managerial style plays a mediating role between entrepreneurs’ emotional intelligence and their venture’s performance.

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