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ABSTRACT
The objective of this study is to examine the impact of emotional intelligence on financial performance in terms of
return on investment in the telecommunication industry in Ghana. Two hundred and eight (208) each of service providers
and customers of Ghanas six telecommunication firms responded to questionnaires administered. Pearsons correlation
test, partial correlation test and ordinary least squares regression were used to analyse data. Findings indicate that
emotional intelligence significantly predicts financial performance in terms of return on investment when it stands in
isolation from service quality and customer satisfaction (t = 14.29, p .000), with 49.8% of the variance explained.
On the other hand, emotional intelligence significantly predicts financial performance in terms of return on investment
(t = 6.63, p = .000) in its association with service quality and customer satisfaction, with a variance of a little less than 10%
explained. Having expanded the conceptual equation to show significant correlation between emotional intelligence(EI),
relationship marketing(RM), service quality(SQ) and customer satisfaction(CS), it provides a valid basis to recommend to
telecommunication firms in Ghana to invest through training and development programs to equip their service providers
with emotional intelligence.
KEYWORDS: Emotional Intelligence, Relationship Marketing, Service Quality, Customer Satisfaction, Financial
Performance, ROI
INTRODUCTION
A good customer-organisation relationship is relevant to the growth of companies in the services industry
(Adu-Gyamfi, 2014; Kenbach & Schutte, 2005). This is because service companies rely largely on this relationship to
impress customers. Thus customers service quality perceptions are influenced by their experience with service providers
at the point of service delivery. In view of this, service provider-customer relationship management in the light of
principles of relationship marketing is basic to service marketing. Relationship marketing comes with the framework of
strategies for building desired organisation-customer relationship (Yaghoubi et al. 2011; Opuni & Adu-Gyamfi, 2014).
Opuni & Adu-Gyamfi (2014) quoted Yaghoubi et al. (2011) by stating that the key role of relationship marketing is to
savour every customer-organisation interaction in terms of what customers want and what the organisation stands to gain
(p. 12). Even so, many have argued in the light of empirical evidences that successful relationship marketing rests on
emotional intelligence (EI) of service providers.
Empirical studies indicate that emotional intelligence enhances employees performance in the areas of personal
selling and service delivery (Kaura, 2011; Komlosi, 2013; Kenbach & Schutte, 2005; Kim, 2010). Emotional intelligence
impacts service quality (Manisha, 2012), which forms the basis of customer satisfaction, patronage, loyalty, and business
growth (Manisha, 2012; Ghalandari et al. 2012; Kenbach & Schutte, 2005). Strengthening the harmony between service
delivery and customer demand in the service sector is the guiding strategy to maximum organizational performance
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Emelia Danquah
(Radha & Prasad, 2013; Kenbach & Schutte, 2005). Moreover, organisational performance is boosted when the emotional
intelligence of employees provides cohesion between employees and customers in service delivery (Ghalandari et al. 2012;
Hashem, 2010).
The impact of emotional intelligence on service delivery and organisational performance permeate all sectors
(Shahhosseini et al. 2012). Rahim & Malik (2010) found in their study that EI impacts financial performance directly and
indirectly through service quality and customer satisfaction in the delivery of banking services. Hashem (2010) also
provides precise empirical evidence to the direct impact of EI on financial performance in the delivery of banking services.
Moreover, Ghalandari et al. (2013) found in their study that EI significantly impacts organisational performance in the
health sector, with support from the findings of Pahuja & Sahi (2012) in this context. Rahim & Malik (2010) and Khalid &
Khan (2012) also provide an empirical account that reflects the direct relationship between emotional intelligence and
organizational performance.
The research of Danquah & Wereko (2014) confirms that emotional intelligence significantly predicts service
quality and customer satisfaction from the viewpoint of banking in Ghana. Similarly, Opuni & Adu-Gyamfi (2014) found
in their empirical study that emotional intelligence significantly predicts service quality and customer satisfaction in the
context of service delivery in the telecommunication sector in Ghana. In view of the empirical studies of Ghalandari et al.
(2013), Danquah (2014) and Opuni & Adu-Gyamfi (2014), emotional intelligence is confirmed to predict customer
satisfaction and service quality in healthcare and service delivery in the banking and telecommunication sectors.
There is however various gaps in EI research currently. The biggest of gaps in EI research has to do with a lack of
focus on the extent to which emotional intelligence impacts financial performance (Ghalandari et al. 2013). Virtually all EI
researches focus on the relationship between EI and service quality or customer satisfaction (Ghalandari et al. 2013).
Thus very few empirical researchers analysed the impact of emotional intelligence on financial performance of service
providers. In a Ghanaian context, gaps in EI research are more alarming. Though emotional intelligence among service
providers has been found to positively influence service quality and customer satisfaction by Danquah & Wireko (2014),
Opuni & Adu-Gyamfi (2014) and other few researchers, there is very little evidence on the direct impact of EI on financial
performance in service delivery from a Ghanaian point of view. Moreover, a greater part of related studies have been
focused on the effect of emotional intelligence on service quality in developed country contexts (Radha & Prasad, 2013;
Kenbach & Schutte, 2005). The few related empirical studies available in developing country context were conducted in
Asia (Ghalandari et al, 2013; Yaghoubi et al, 2011). Another gap in EI research is the fact that too much attention has been
given to the financial services sector, precisely banking, with little attention given to other subsectors of the services
industry such as telecommunication.
In view of these gaps in emotional intelligence research, especially in the context of service delivery in Ghana,
this study was conducted to examine the impact of emotional intelligence of service providers on the financial performance
of telecommunication firms in Ghana. This study was focused on the telecommunication sector because it constitutes one
of the dominant service sectors in Ghana relative to the sectors of banking and insurance. Moreover, a few related EI
researches have been conducted on the banking sector already. Hence, more empirical studies on EI in the context of other
dominant service sectors in Ghana such as telecommunication are needed to broaden the scope of empirical evidence on
the relevance of EI to service delivery.
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RESEARCH OBJECTIVES
The objective of this study is to examine impact of emotional intelligence (EI) on financial performance in terms
of return on investment (ROI) in the telecommunication industry in Ghana. The study also serves as an avenue for
verifying the relevance of improving service providers emotional intelligence in order to achieve improved service
delivery in the telecommunication industry in Ghana.
LITERATURE REVIEW
Undoubtedly, the financial performance of service provider firms depends on various variables, with service
quality being one of the major variables (Opuni & Adu-Gyamfi, 2014). Service quality positively influences financial
performance by enhancing customers satisfaction and their retention (Danquah, 2014). Service quality is therefore a basis
for achieving the expected financial performance of service provider firms. Even so, the quality of services depends on
service provider-customer relationship that drives customers service quality perceptions (Opuni & Adu-Gyamfi, 2014;
Danquah, 2014; Porcu et al. 2012; Manisha, 2012). Moreover, service providers relationship with customers during
service delivery is influenced by the emotional intelligence of service providers (Opuni & Adu-Gyamfi, 2014;
Danquah & Wireko, 2014).
Various writers have defined emotional intelligence. Harms & Cred (2010) defined emotional intelligence (EI) as
the ability to identify, assess and control the emotions of oneself, of others and of groups. Before Harms & Cred, (2010)
defined EI, Salovey & Mayer (1997) defined it as the ability to monitor ones own and others feelings and emotions, to
discriminate among them and to use this information to guide ones thinking and actions (p. 18). This definition was later
modified by Salovey et al. (2001) to the ability to perceive emotion, integrate emotion to facilitate thought, understand
emotions and to regulate emotions towards personal growth (p. = 233). In a service marketing viewpoint, EI is personally
defined as a service providers ability to perceive, understand and control his emotions and those of the customers he
serves to ensure that services are delivered to meet the satisfaction of customers. From all these definitions the common
point of focus is not the need to acquire EI skills but more importantly the need to apply them. Emotional intelligence
therefore serves as a catalyst in the relationship between their service provider and the customer during service delivery.
Emotional intelligence has two arms, namely trait and ability emotional intelligence (Mayer et al. 2001), and the
two are often referred to as mixed emotional intelligence (Mayer et al. 2001; Opuni & Adu-Gyamfi, 2014).
Goleman (1996) derived five elements of EI (i.e. self-awareness, self-regulation, social skill, empathy and motivation).
In the context of service marketing, self-awareness is the ability to know customers and service providers emotions,
strengths, weaknesses, drives, values and goals and to recognize their impact on others while using gut feelings to guide
decisions (Goleman, 1996; Danquah & Wereko, 2014). Self-regulation is the controlling or redirecting of the service
providers
disruptive
emotions
and
impulses
and
adapting
to
changing
circumstances
of
customers
(Goleman, 1996; Danquah, 2014). This is based on the fact that customer taste, preferences and demands keep changing
with time. Social skill embraces managing relationships with customers to move them in the desired direction of patronage
and retention (Goleman, 1996), while empathy entails a consideration of customers feelings, especially when making
decisions about product/service delivery and customer-focused strategy implementation (Goleman, 1996; Danquah &
Wereko, 2014). Motivation is a psychological element that drives the service provider to achieve the highest level of
customer patronage and satisfaction through service quality (Goleman, 1996).
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Emelia Danquah
The five elements of EI defined above were later reduced trough Principal Component Analysis by
Goleman (1998) to four, namely self-awareness, self-regulation, social awareness and social skill. This reduction was not
as a result of the irrelevance of motivation as an element of EI. Rather, items of motivation were merged to the other four
elements of EI by Goleman (1998). Based on the four new items of EI, Yaghoubi et al. (2011) developed a model that
forms a basis for relating EI to financial performance. In this model, the four elements constitute EI, which drive the
impact of relationship marketing. Figure 1 is a conceptualisation of this model.
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Source: Adjusted from Source: Yaghoubi et al. (2011) and Opuni & Adu-Gyamfi (2014)
Figure 2: Conceptualisation of the Impact of EI on Financial Performance
KEY: EI Emotional intelligence; RM Relationship marketing; SQ Service quality; CS Customer
satisfaction
HYPOTHESES
H1: Emotional intelligence is not related to service quality in the telecommunication industry in Ghana
H2: Emotional intelligence is not related to customer satisfaction in the telecommunication industry in Ghana
H3: Emotional intelligence is not related financial performance in terms of ROI in the telecommunication industry
in Ghana
H4: Emotional intelligence does not significantly predict service quality in the telecommunication industry in
Ghana
H5: Emotional intelligence does not significantly predict financial performance in terms of ROI in the
telecommunication industry in Ghana
H6: Emotional intelligence has no significant moderation effective on the relationship between service quality and
ROI and between customer satisfaction and ROI
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Self-administered questionnaires for employees and customers were used to collect data. EI was measured using
employees questionnaire, which was based on the Emotional Intelligence Appraisal (EIA) and Emotional and Social
Competency Inventory (ESCI) scales. Customer satisfaction and service quality were measured with customers
questionnaire, which was based on the Zeithml et al. (1990) Service Delivery scale. Financial performance was measured
in terms of return on investment (ROI). Average ROI figures for the period of 2007 to 2012 were accessed from the
management of the six telecommunication firms and used in this study.
In the process of collecting data, customers at the various customer service centers were asked to respond to
questionnaires immediately after they had been attended to by the participating relationship officers. Customers were made
to respond after they had been served to ensure that they provided information based on their current experiences with
service delivery. Service providers were made to provide responses after customers had done so. In data collection, many
customers declined to respond to questionnaires. As a result, 208 questionnaires were successfully completed out of 384.
Thus this studys response rate was 54%.
Data was analyzed using Statistical Package for the Social Sciences (SPSS). The first, second and third research
hypotheses were tested using Pearsons correlation test. The fourth and fifth hypotheses were tested with ordinary least
squares (OLS) regression analysis, while the sixth hypothesis was tested with partial correlation test. These statistical tools
were used basically because data employed were continuous and were confirmed to be normally distributed using
Shapiro-Wilk test of normality. Chronbachs alpha was used to verify the reliability of the research instruments used.
The reliability coefficients obtained were .798 (for employees) and .802 (for service providers). The fact that data used in
this study were reliable and normally distributed was a basis for making valid research conclusions.
RESULTS
This section presents findings of this study based on the null hypotheses stated. Hypotheses are tested at 5%
significance level with the assumption that data associated with the dependent and independent variables are normally or
approximately normally distributed. Table 1 verifies whether this assumption is satisfied or not.
Table 1: Shapiro Wilks Test of Normality
Shapiro-Wilk
Statistic
.714
df
208
Sig
.423
ROI
.811
208
.207
Service quality
.687
208
.732
Emotional intelligence
.678
208
.861
Customer satisfaction
Table 1 shows the Shapiro Wilks test of normality. It tests the null hypothesis that data associated with Customer
satisfaction, ROI, Service quality and Emotional intelligence were normally or approximately normally distributed. At 5%
significance level, statistics in the table indicate that data associated with customer satisfaction (p = .423), ROI (p = .207),
service quality (p = .732) and emotional intelligence (p = .861) were normally distributed (p > .05). Hence, a basis for
making valid conclusions in this study was available from this standpoint.
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Pearson Correlation
Emotional
intelligence
Emotional
Intelligence
1
Service
Quality
.866**
Sig. (2-tailed)
N
Pearson Correlation
.000
208
.866
208
**
.000
N
208
**. Correlation is significant at the 0.05 level (2-tailed).
208
Table 2 is associated with testing the first null hypothesis of this study. This null hypothesis states that emotional
intelligence is not related to service quality in the telecommunication industry in Ghana. This hypothesis is tested at 5%
significance level. From Table 2, there is a high positive relationship between EI and service quality at 5% significance
level, r (208) = .866, p = .000. This implies that customers service quality perceptions are enhanced with increasing
emotional intelligence of service providers in the telecommunication industry in Ghana. In this regard, the rate at which EI
changes service quality perceptions of customers is high. The first null hypothesis is therefore not confirmed. It is therefore
concluded that emotional intelligence is significantly related to service quality in the telecommunication industry in Ghana.
Table 3: Relationship between EI and Customer Satisfaction
Emotional Customer
Intelligence Satisfaction
Pearson Correlation
1
.505**
Emotional
Sig. (2-tailed)
intelligence
N
Pearson Correlation
Customer
satisfaction
Sig. (2-tailed)
.000
208
.505
**
208
1
.000
N
208
208
**. Correlation is significant at the 0.05 level (2-tailed).
Table 3 comes with Pearsons correlation test. It is associated with testing the second null hypothesis of this study.
The second null hypothesis of this study states that emotional intelligence is not related to customer satisfaction in the
telecommunication industry in Ghana. Like the first null hypothesis, this hypothesis is tested at 5% significance level.
From Table 3, EI and customer satisfaction have an averagely strong positive relationship, r (208) = .505, p .000.
This means that the satisfaction of customers on service delivered in the telecommunication industry in Ghana is enhanced
with increasing EI among service providers at the customer service centres. Unlike EIs relationship with service quality
(which is stronger), EIs relationship with customer satisfaction is on average or relatively weaker. This is realistic because
customer satisfaction is directly dependent on service quality. Meanwhile, EI must have posed much of its influence on
service quality directly, for which it could not pose much influence on customer satisfaction directly. In essence,
EI positively influences customer satisfaction directly (r = .505) and indirectly (r = .866) through service quality. It is also
important to establish how EI relates to financial performance in terms of ROI as conceptualised in figure 2 of this study.
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Emelia Danquah
Pearson Correlation
Emotional
intelligence Sig. (2-tailed)
N
Sig. (2-tailed)
ROI
.706**
.000
208
Pearson Correlation
ROI
Emotional Intelligence
.706
208
**
.000
N
208
**. Correlation is significant at the 0.05 level (2-tailed).
208
The third null hypothesis states that emotional intelligence is not related to financial performance in terms of ROI
in the telecommunication industry in Ghana. This hypothesis is tested at 5% significance level. Table 4 comes with results
of testing this hypothesis. From the table, EI and ROI have a strong positive relationship, r (208) = .706, p = .000.
This implies that financial performance in terms of ROI is improved with improved demonstration of emotional
intelligence by service providers in the telecommunication industry in Ghana. In this regard, the rate at which EI causes a
change in financial performance in terms of ROI is high. Hence, the third research hypothesis is not confirmed.
This conclusion corroborates conclusions made on the first and second null hypotheses. This is because organisational
revenue and financial returns are based on customer patronage, which is dependent on service quality. Test of the initial
hypotheses have proved that EI is the driver of service quality and customer satisfaction.
What is uncertain at this stage is whether EI predicts ROI in the telecommunication industry in Ghana. Even
before this is verified, there is the need to know if EI predicts service quality as established in table 3 of this study.
This would help to better understand the predictive strength of EI on ROI since ROI is directly dependent on service
quality.
Table 5: OLS Regression: Prediction of Service Quality by EI
Anova
Coefficients
R Square
Adjusted R Squared
F
Sig.
EI
t
Sig.
.751
.749
620.34
.000
.880
24.91
.000
Table 5 shows an OLS regression for the prediction of service quality by EI. It is associated with testing the fourth
null hypothesis of this study. From the table, EI accounts for about 75.1% of variance on service quality.
The variance accounted for by EI reflects a strong predictive strength on service quality. Moreover, the model of the
prediction of service quality by EI is significantly fit (F = 620.34, p = .000). More importantly, EI significantly predicts
service quality (t = 24.91, p = .000). The fourth null hypothesis of this study is therefore not confirmed. Hence, EI
significantly predicts service quality in the telecommunication industry in Ghana.
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Anova
Coefficients
R Square
Adjusted R Squared
F
Sig.
EI
t
Sig.
.498
.495
204.17
.000
.006
14.29
.000
Table 6 shows an OLS regression for the prediction of financial performance in terms of ROI by EI.
It is associated with testing the fifth null hypothesis of this study. From the table, EI accounts for about 49.8% of variance
on ROI when it stands in isolation from service quality and customer satisfaction. In this case however, the variance
accounted for by EI reflects a weak predictive strength on ROI relative to the variance contributed by service quality on
ROI. This is because EI must have exhausted much of its influence in predicting service quality as seen in Table 5.
The prediction of ROI by EI can be expressed significantly in a fitted model (F = 204.17, p = .000). More importantly,
EI significantly predicts service quality (t = 14.29, p = .000). The fifth null hypothesis of this study is therefore not
confirmed. Hence, EI significantly predicts financial performance in terms of ROI in the telecommunication industry in
Ghana.
As discovered earlier, when EI stands alone as a variable, it predicts ROI with a variance of 49.8%.
This predictive strength of EI is likely to be lower when it associates with service quality and customer satisfaction. This is
because EI would shed much more of its influence on service quality and customer satisfaction, with little influence placed
on ROI. Tables 7 to 10 confirm this assertion.
Table 7: Model Summaryd
Model
1
R
.741a
R Square
.549
.753b
.567
.563
.00774
.644
.639
.00704
.802
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Emelia Danquah
Table 8: ANOVAd
Model
1
Sum of Squares df
Mean Square
Regression
.016
.016
Residual
.013
207
.000
Total
Regression
.029
.016
208
2
.008
Residual
.012
206
.000
Total
Regression
.029
.018
208
3
.006
Residual
.010
205
.000
Total
.029
Predictors: (Constant), Service quality
Sig.
251.647 .000a
135.110 .000b
123.485 .000c
208
Unstandardized Standardized
Coefficients
Coefficients
B
Std. Error
(Constant)
.009
.002
Service quality
.007
.000
Sig.
Beta
Collinearity
Statistics
6.005
.000
.006
.012
.741
15.863
.000
.006
.007
VIF
1.000
1.000
(Constant)
.012
.002
6.765
.000
.009
.016
Service quality
.007
.000
.774
16.414
.000
.006
.008
.945
1.058
Customer
satisfaction
-.001
.000
-.141
-2.989
.003
-.002
.000
.945
1.058
(Constant)
.015
.002
8.811
.000
.011
.018
Service quality
.002
.001
.211
2.214
.028
.000
.003
.192
5.212
Customer
satisfaction
-.003
.001
-.369
-6.710
.000
-.004
-.002
.575
1.739
Emotional
intelligence
.006
.001
.711
6.628
.000
.004
.008
.151
6.624
Table 9 comes with the coefficients of the prediction of ROI by EI in the face of service quality and customer
satisfaction. In the first model, service quality significantly predicts ROI significantly (t = 15.863, p .000). In the second
model, service quality (t = 16.414, p = .000) and customer satisfaction (t = -2.989, p = .000) predict ROI significantly.
In the third model, EI significantly predicts ROI in the face of service quality and customer satisfaction (t = 6.628,
p = .000). Therefore, there is substantial evidence that EI significantly predicts ROI individually with a variance of 49.8%
and in the face of service quality and customer satisfaction with a variance of a little less than 10%.
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Controlled
Variable
EI
Original r
Controlled r
Change in r
Controlled Sig.
.741
.321
.420
.000
.059
-.531
.590
.000
The sixth research hypothesis of this study states that emotional intelligence has no significant moderation effect
on the relationship between service quality and ROI and between customer satisfaction and ROI. From Table 10,
the strength of the relationship between service quality and ROI reduces (becomes weak) from .741 to .321 when EI is
controlled for (i.e. when the positive influence of EI on service quality is removed), though the new relationship is still
significant at 5% significance level (p = .000). Also, the relationship between customer satisfaction and ROI reduces from
a very weak status (r = .059) to a strong negative status (r = -.531) when the positive influence of EI on customer
satisfaction is removed. In the two situations, EI can be said to strongly empower service quality and customer satisfaction
in their positive influences on ROI. Thus the positive influence of service quality and customer satisfaction on ROI is
largely driven by EI.
DISCUSSIONS
In this study, a strong positive relationship between EI and service quality was found, r (208) = .866, p = .000.
This relationship reflects the fact that service quality improves with increasing service providers emotional intelligence in
service delivery in the telecommunication industry. This finding is supported by Opuni & Adu-Gyamfi (2014) from the
perspective of service delivery in the telecommunication industry in Ghana, with the strength of this relationship being also
positively strong (r = .889, p = .000). The strong positive relationship between EI and service quality is supported by
Danquah & Wereko (2014) from the standpoint of service delivery in the banking sector of Ghana. Meanwhile, the strong
positive relationship between EI and service quality is also supported by empirical studies conducted outside Ghana.
These studies include researches of Hashem (2010), Rahim & Malik (2010) and Khalid & Khan (2012). Based on the
conceptual framework of Opuni & Adu-Gyamfi (2014) and the model of Yaghoubi et al. (2011), EI and customer
satisfaction showed an averagely strong positive relationship, r (208) = .505, p .000.
In addition, EI and ROI have a strong positive relationship, r (208) = .706, p = .000, providing a basis for
verifying the prediction of ROI by EI. The OLS regression analysis results confirmed that EI significantly predicts service
quality (t = 24.91, p = .000), a result supported by findings of the studies of Opuni & Adu-Gyamfi (2014) and Danquah &
Wereko (2014). Meanwhile, EI significantly predicts ROI when it stands in isolation from service quality and customer
satisfaction, with 49.8% of variance contributed. Comparatively, EI predicts service quality stronger than it predicts ROI.
This is possibly because EI exhausts much of its influence in predicting service quality, which in turn predicts ROI with a
variance of about 54.6%. EI significantly predicts ROI in the face of service quality and customer satisfaction with a
variance of less than 10%. In essence, EI predicts ROI directly, with a variance of 49.8% contributed. It also predicts ROI
indirectly through service quality and customer satisfaction with a variance a little below 10%. The direct and indirect
impact of EI and financial performance in terms of ROI is supported by findings in the study of Pahuja & Sahi (2012),
Rahim & Malik (2010) and Khalid & Khan (2012). Unfortunately, no identifiable support has been found for this finding
in a Ghanaian context owing to, possibly, the scarcity of EI research on this subject in a Ghanaian context.
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EI was also found to positively influence ROI by serving as a moderator of the relationships between service
quality and ROI and customer satisfaction and ROI. In this vein, the strength of the relationship between service quality
and ROI reduces (becomes weak) from .741 to .321 when EI is controlled for (i.e. when the positive influence of EI on
service quality is removed), though the new relationship is still significant at 5% significance level (p = .000). Also, the
relationship between customer satisfaction and ROI reduces from a very weak status (r = .059) to a strong negative status
(r = -.531) when the positive influence of EI on customer satisfaction is removed. In the two situations, EI can be said to
strongly empower service quality and customer satisfaction in their positive influences on ROI. The moderating role of EI
in the relationship between service quality and ROI and customer satisfaction and ROI is supported by findings in the study
of Opuni & Adu-Gyamfi (2014) in the same context; thus in service delivery in the telecommunication industry in Ghana.
With regard to findings in the study of Opuni & Adu-Gyamfi (2014), a special trend is worth noting in this study.
This trend has to do with the empirical evidence that EI sheds a larger part of its influence on the closest variable to it; thus
service quality (Please see Figure 2). The closer a variable is to EI, the higher the influence on it from EI. Owing to the fact
that service quality and customer satisfaction come before ROI in the conceptualisation in Figure 2, EI makes a relatively
small influence on ROI. However, whatever influence service quality and customer satisfaction makes on ROI is credited
to the influence made by EI on service quality and customer satisfaction. It is of this reason that the influence of EI on ROI
is direct (without the participation of service quality and customer satisfaction) and indirect (i.e. through service quality
and customer satisfaction).
Practically, customers can only be satisfied when the services delivered to them attain quality levels. For this
reason, the highest of EIs influence falls on service quality. Similarly, the financial performance of the organisation
depends on customer satisfaction and how its influences customer patronage and retention. As a result, EIs influence on
customer satisfaction is stronger relative to its influence on ROI, a phenomenon confirmed in this study and those of Opuni
& Adu-Gyamfi (2014) and Danquah & Wireko (2014). Nonetheless, customer patronage and retention are missing in the
conceptualisation found in Figure 2. Possibly, this forms a basis for investigating the mediating effects of customer
patronage and customer retention in future studies.
37
Furthermore, the strength of the relationship between service quality and ROI reduces (becomes weak) from .741
to .321 when EI is controlled for (i.e. when the positive influence of EI on service quality is removed), though the new
relationship is still significant at 5% significance level (p = .000). Also, the relationship between customer satisfaction and
ROI reduces from a very weak status (r = .059) to a strong negative status (r = -.531) when the positive influence of EI on
customer satisfaction is removed. In the two situations, EI can be said to strongly empower service quality and customer
satisfaction in their positive influences on ROI. Thus the positive influence of service quality and customer satisfaction on
ROI is largely driven by EI.
It is recommended that telecommunication firms in Ghana use training and development programs to equip their
service providers with emotional intelligence and service providers in the telecommunication firms can be assured that
investment in the acquisition of EI skills will positively impact on their ROI. Telecommunication firms must also
encourage their service providers to demonstrate the emotional intelligence acquired in delivering services. Researchers are
encouraged to conduct much more research on this subject to enhance the level and scope of empirical evidence on the
impact of emotional intelligence on business performance in a Ghanaian context.
REFERENCES
1.
Boyatzis, R, Goleman, D, Rhee, K. (1998). Clustering competence in emotional intelligence: insights from the
emotional competence inventory (ECI).
2.
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