Relationships between organisational emotional capability, innovative corporate culture and firm performance

The organizations that has an innovative culture, flexible and able to act quickly against changing environmental conditions, market and customer needs, differentiate from others and gain competitive advantage. In these organizations, employees are encouraged for experiencing, failing is tolerated and employees can express themselves freely. Employees are anticipated to be successful and share the values of the organization. However, it is crucial to consider that they are individuals and their output is related to their emotions. In this context, organisational emotional capability is described as the capacity of the organisation to observe, discover and use the emotions of employees to shape the routines and structure of corporate. The companies with improved organisational emotional capability increase their performance. The relationship between innovative corporate culture, organisational emotional capability, product and process innovation and the effects of these variables on corporate performance were investigated in this thesis. As a result of the analyses, it has been observed that innovative culture positively affects organisational emotional capability and corporate performance. In addition, some of the sub-dimensions of organisational emotional capability affect product and process innovation positively and product and process innovation increase the firm performance.