Author(s): Piperopoulos P
Abstract: In the present economic downturn, with financial assets that may be heavily devalued, the real value of the firm might come in the form of strategies for unleashing the creative and innovative power of the human mind — i.e., the development of an emotionally intelligent workforce. In today’s highly competitive era, and especially with the present economic downturn, SMEs should be pursuing creativity and innovation that could provide them with sustainable competitive advantage and create value for the firm. The core competencies of enterprises are intangible, essentially embedded within the fabric of their organization: ‘tacit’ knowledge of employees and emotional intelligence. People, as a resource, are important not only as participants in the labor force, but also as creative minds and producers of intangible assets. Emotional intelligence can be enhanced through training and development programs. ‘Tacit’ knowledge and emotional intelligence can be incorporated into a model that should augment the firm value.