A Model Relating CEO Social Intelligence and Strategic Engagement: A Study In Small Business Organizations

Abstract

Answering the call for additional investigation into microfoundations recently
raised by organizational theorists and researchers, this study empirically investigates
the relationship between social intelligence (SI) and strategic engagement (SE)
among U.S. small business chief executive officers (CEOs). SI is being aware of
key social contexts, effectively addressing challenges occurring in those contexts,
understanding the concerns of others and their related personal situations/emotional
states, and building/maintaining positive relationships in social situations thereby
behaving appropriately. SE refers to actively participating in the process of
formulation, implementation, and review of strategies for the purpose of improving
the competitive position of the organization. Opinions of observers (top managers)
regarding their respective CEOs’ SI and SE were assessed with questionnaires
to explore the relationship between SI and SE. Data analysis using LISREL 9.2
suggests that social intelligence is positively associated with strategic engagement
behaviors among successful top executives. Implications for the selection of new
CEOs and the training of existing CEOs are offered.