Research Companion to Emotion in Organizations
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Research Companion to Emotion in Organizations

Edited by Neal M. Ashkanasy and Cary L. Cooper

This Companion brings together many leading scholars to address a wide range of topics in 38 chapters, across five levels of organizational analysis – including within-person, between-person (individual differences), relationships, groups, and the organization as a whole. Chapters tackle structure and measurement of emotion, antecedents and consequences of positive and negative emotions, including effects on work satisfaction and performance. The expression, recognition, and regulation of emotion and the propagation of mood and emotion in groups are also dealt with. The Companion explores contemporary issues including leadership, organizational climate and culture, as well as organizational change.
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Chapter 34: How Contrasting Emotions can Enhance Strategic Agility

Quy Nguyen Huy


Quy Nguyen Huy Introduction In this chapter, I seek to nuance the predominantly negative view of emotion in the strategy literature by highlighting certain conditions under which emotion can enhance the organization’s adaptive ability. A growing dynamic capability literature suggests that competitive advantage could accrue to organizations that develop routines that enable change rather than routines that maintain operational stability (e.g., Blyler & Coff, 2003; Helfat & Peteraf, 2003). Dynamic capability refers to ‘the firm’s ability to integrate, build and reconfigure internal and external competencies to address rapidly changing environments’ (Teece et al., 1997, p. 516). Dynamic capability enables the firm to innovate and change its strategies to match or create environmental changes (Eisenhardt & Martin, 2000). The firm is likely to gain competitive advantage if it can realize adaptive change more reliably and rapidly and with less cost than its competitors (Zott, 2003). At least two strategic processes contribute to dynamic capability: (i) the firm’s ability to reduce the cost of strategic change (Greve, 1999); and (ii) organizational learning (Szulanski, 1996). Together, these processes enable strategic agility, which refers to the firm’s ability to adapt to changing environments or to shape them. I choose these strategic processes for four reasons. First, they are inherent to the definition of dynamic capability. Second, they have been argued by strategy scholars to enable sustainable superior performance (see Zott, 2003). Third, the link between emotion and these capabilities can be substantiated by recent advances in the literature. Fourth, these capabilities complement one another. Organizations...

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