Interrrelations among the emotional and core capabilities and their impact on firm performance

The main goal of business management and strategy is to create and maintain value. Value creation begins by providing value to customers. Possessing valuable and rare resources provides the basis for value creation. The theory of organizational capabilities is an extension of resource-based view (RBV), which argues that the performance of firms is explaned by the rare, valuable, inimitable and non-substitutable resources that the firms own. The combination of a set of resources and complementary organizational components can form organizational capabilities. Some capabilities are relatively unique in competition and form competencies of a company. One of the firm competencies is the emotional capability based on the theories of organizational capability and emotional intelligence.In this study, the interrelations among the emotional and core capabilities, and their impact on firm performance have been researched. Research data collected from 307 managers of 211 firms from different regions of Turkey have first been subjected to factor and reliability analyses. Regression analyses have been used to test the hypotheses and the results show that emotional capability has positive effect on firm performance and on organizational core capabilities, on the other hand, marketing, technological and management capabilities have also positive effect on firm performance. Finally, managerial and research implications have been provided.