Enhancing Sustainable Competitive Advantage: The Role of Emotional Intelligence in Organizational Adaptation within Dynamic Business Environments

¹ Department of Management, Universitas Pasundan, Bandung 40153, Indonesia
² Departmenr of Accounting, Universitas Lancang Kuning, Pekanbaru 28261, Indonesia

^* Corresponding author: arla.214010073@mail.unpas.ac.id

Abstract

This research aims to analyze how emotional intelligence facilitates the process of organizational adaptation in response to rapidly changing and complex business environments, thereby contributing to the achievement of sustainable competitive advantage. This research uses a quantitative method, gathering data through 400 survey responses from 60 companies in the textile industry sector in Indonesia. SEM techniques are employed to analyze data in order to investigate the connections between sustainable competitive advantage, organizational adaptation, and emotional intelligence. The findings indicate that emotional intelligence has a positive and significant impact on organizational adaptation, which in turn positively influences sustainable competitive advantage. These results highlight the importance of developing emotional intelligence among leaders and employees as a strategy to enhance organizational adaptability and maintain long-term competitive advantage. The implications of this study include recommendations for managers and organizational leaders to focus on improving emotional intelligence as part of human resource development initiatives. Additionally, this research provides insights for academics on the importance of the interaction between individual psychological factors and organizational dynamics in the context of sustainable competitive advantage. Ultimately, this study underscores the strategic value of emotional intelligence in fostering resilient and adaptable organizations capable of sustaining a competitive edge in dynamic markets.