Abstract
Purpose This study aims to focus on the important role of chief executive directors (CEOs') emotional intelligence to explain the interactive relationship between research and development (R&D) investment and environmental performance in the energy sector and also to explain how the diversification into new energy technology provides explanations for environmental problems. Design/methodology/approach This research was realised through the completion of a questionnaire-type inquiry structured around table-based analysis. Two five-scale questionnaires were completed by CEOs relating to oil and gas industry. The first instrument reflects the level of emotional intelligence. The second instrument indicates elements of environmental performance. A total of 158 firms were approached using a questionnaire, where 112 responses were received and 108 valid responses were used for analysis. The data were analyzed by the partial least squares method. Findings The results confirm the positive effect of CEOs' emotional intelligence on the interaction between R&D, energy and recycling. In addition, the diversification strategy further influences the role of CEOs' emotional intelligence to provide explanations into a R&D investment for the environmental problems in the Tunisian energy sector. The findings reveal challenges and opportunities for Tunisia's energy industry to increase R&D investment that will enable the economy to use more environment-friendly devices and technologies that will be reducing pollution. Originality/value First, this study indicates the important role of managerial emotional intelligence to explain the impact of R&D investment and help Tunisian energy enterprises look for means to minimise their environmental expenses through raising energy efficiencies, reducing pollution and encouraging reuse and recycling. Second, this study explains how a diversification strategy can mediate the interaction effect of CEO emotional intelligence. The Tunisia oil and gas sector has not been subjected to extensive research and this paper, to the best of the authors' knowledge, represents a first attempt to provide an overview of the sector.