Organizational Emotional Materiality Framework: Emotions as Strategic Resources

This paper proposes Organizational Emotional Materiality (OEM) framework that specifies how emotions influence organizational value through three distinct pathways: Emotion-Decision pathway, Emotion-Social capital pathway and Emotion-Market signaling pathway. It integrates Affective Events Theory, Social Exchange Theory, Emotion Regulation Theory and organizational capability perspectives to develop five testable propositions that advance understanding of when, how and why emotions become strategically material for organizations. The OEM framework addresses gaps in organizational behavior literature by providing a systematic theoretical model linking micro-level emotional processes to macro-level organizational outcomes, while specifying boundary conditions and measurement considerations for empirical validation. The theoretical contribution lies in reconceptualizing emotions from peripheral organizational factors to measurable strategic resources that systematically influence competitive advantage through identifiable causal mechanisms. The paper offers evidence-based recommendations for embedding emotional awareness into strategic management while acknowledging the risks of dysfunctional emotional manipulation.