The role of intuition in entrepreneurship and business venturing decisions

More than meets the gut: a prototype analysis of the lay conceptions of intuition and analysis

Using a prototype approach, we assessed people's lay conceptions of intuition and analysis. Open-ended descriptions of intuition and analysis were generated by participants (Study 1) and resulting exemplars were sorted into features subsequently rated in centrality by independent participants (Study 2). Feature centrality was validated by showing that participants were quicker and more accurate in classifying central (as compared to peripheral) features (Study 3). Centrality ratings suggested a single-factor structure describing analysis but revealed that participants held lay conceptions of intuition as involving two different types of processes: (1) as an automatic, affective, and non-logical processing, and (2) as a holistic processing that can assist in problem-solving. Additional analyses showed that the centrality ratings of intuition's facets were predicted by participants' self-reported intuitive style, suggesting intuition is differently perceived by intuitive and non-intuitive people. We discuss the implications of these results for the study of intuition and analysis.

The predictive effect of relative intuition on social entrepreneurship orientation: How do exploratory and exploitative learning and personal identity interact?

This study complements the stream of psychology studies on the effects of an individual's intuition on strategic decisions and how it shapes behavioral tendencies by extending how these effects evolve social entrepreneurship orientation in social entrepreneurship. Theoretically, we establish the nexus between relative intuition and social entrepreneurship orientation as well as the moderating roles of exploratory and exploitative learning and personal identity. Empirical validation of these nexuses was based on a cross-section of 276 certified social enterprises in China. The findings indicate that social entrepreneurs' relative intuition has a positive association with social entrepreneurship orientation. Exploratory and exploitative learning positively mediate the nexus between relative intuition and social entrepreneurship orientation. In addition, personal identity positively moderates the effects of exploratory and exploitative learning on social entrepreneurship orientation. Subsequently, we found that the link between relative intuition and social entrepreneurship orientation strengthens as the social entrepreneurs' personal identity increases. In this light, we identify relative intuition as the foundation of exploratory and exploratory learning for the development of social entrepreneurship orientation. Similarly, we shed light on how personal identity positively facilitates the roles of these factors by arousing dedication to the processes/stages of the pursuit of social entrepreneurship orientation goal attainment.

Affect and Cognition in Managerial Decision Making: A Systematic Literature Review of Neuroscience Evidence

How do affect and cognition interact in managerial decision making? Over the last decades, scholars have investigated how managers make decisions. However, what remains largely unknown is the interplay of affective states and cognition during the decision-making process. We offer a systematization of the contributions produced on the role of affect and cognition in managerial decision making by considering the recent cross-fertilization of management studies with the neuroscience domain. We implement a Systematic Literature Review of 23 selected contributions dealing with the role of affect and cognition in managerial decisions that adopted neuroscience techniques/points of view. Collected papers have been analyzed by considering the so-called reflexive (X-) and reflective (C-) systems in social cognitive neuroscience and the type of decisions investigated in the literature. Results obtained help to support an emerging "unified" mind processing theory for which the two systems of our mind are not in conflict and for which affective states have a driving role toward cognition. A research agenda for future studies is provided to scholars who are interested in advancing the investigation of affect and cognition in managerial decision making, also through neuroscience techniques - with the consideration that these works should be at the service of the behavioral strategy field.

Intuition as Emergence: Bridging Psychology, Philosophy and Organizational Science

Accelerating environmental uncertainty and the need to cope with increasingly complex market and social demands, combine to create high value for the intuitive approach to decision-making at the strategic level. Research on intuition suffers from marked fragmentation, due to the existence of disciplinary silos based on diverse, apparently irreconcilable, ontological and epistemological assumptions. Not surprisingly, there is no integrated interdisciplinary framework suitable for a rich account of intuition, contemplating how affect and cognition intertwine in the intuitive process, and how intuition scales up from the individual to collective decision-making. This study contributes to the construction of a broad conceptual framework, suitable for a multi-level account of intuition and for a fruitful dialogue with distant research areas. It critically discusses two mainstream conceptualizations of intuition which claim to be grounded in a cross-disciplinary consensus. Drawing on the complexity paradigm, it then proposes a conceptualization of intuition as emergence. Finally, it explores the theoretical and practical implications.

Intuitive global sourcing – a study of supplier selection decisions by apparel SMEs

Purpose

The purpose of this paper is to create knowledge on the intuitive global sourcing process applied by small and medium-sized enterprise (SME) managers.

Design/methodology/approach

This study reports on qualitative inquiries with experienced sourcing managers from 10 SMEs in the textile industry. The study follows a three-step semi-structured interviewing process, allowing us to gradually unveil the detailed nature of the intuitive supplier selection process.

Findings

Nine of the 10 SMEs rely on a highly intuitive supplier selections process, where one supplier at a time is gradually taken into the exchange while testing the supplier’s behavior. The process consists of an early heuristics sub-process, which gradually switches over to a more advanced intuiting behavioral pattern-matching process.

Practical implications

Most OM/SCM research has treated global sourcing and supplier selection as a highly rational, analytical and deliberate optimization problem. This study uncovers a completely different, and frequently successful, intuitive process, which could inspire managers in companies of all sizes, faced with high uncertainty about global supplier selection decisions.

Originality/value

Intuition has recently been adopted in the global sourcing literature. However, this study is the first to offer detailed insights into a predominantly intuitive global sourcing process, specifically as it is managed by SMEs.

Holistic View of Intuition and Analysis in Leadership Decision-Making and Problem-Solving

Making decisions is a key task for leaders and managers. Senior leaders are currently exposed to increasing amounts of data which they must process quickly in our current dynamic world. Complex factors in the business world are not always best approached through an analytical framework. Using tacit knowledge gained through intuition can enable a more holistic understanding of the deep nature of today’s problems. This paper takes an expansive view of decision-making with intuition right at the centre and canvasses understandings of intuition arising from philosophy, psychology, Western and Eastern beliefs; and proposes a model that relates intuition to other problem-solving approaches. The paper presents the results of interviews with senior leaders who must make difficult decisions in complex turbulent environments. The interview schedule is based on questions raised in a prior literature search concerning the relationship between intuition and analysis in complexity decision-making and problem-solving, the usefulness to this group of respondents, the possibilities of combining both approaches and any conflict arising from that combination, and understandings of the concept of intuition by these respondents. The resultant model presents a visual description of a process that moves from exterior assessment achieved via sensing and analysis, through to deeper understandings and a more holistic discernment gained through intuition. The model has the potential to assist leaders faced with difficult-to-solve problems in providing a better understanding of the steps involved in tackling problems of increasing levels of complexity.

Are Individual Differences in Information-Processing Styles Related to Transformational Leadership? A Test of the Cognitive Experiential Leadership Model

The recently proposed Cognitive Experiential Leadership Model (CELM) states that leaders’ preference for rational thinking and behavioral coping will be related to their level of transformational leadership. The CELM was based on research that principally used cross-sectional self-report methods. Study 1 compared both self-ratings and follower-ratings of leadership styles with leaders’ self-rated thinking styles in 160 leader-follower dyads. Study 2 compared both self-ratings and coworker-ratings of leadership styles with leaders’ self-rated thinking styles for 74 leaders rated by 607 coworkers. In both Studies, leaders’ rational thinking, imaginative thinking, and behavioral coping correlated positively with their self-rated transformational leadership. However, only behavioral coping, but not rational thinking, was correlated with follower-rated (FR) transformational leadership in Study 1, and thinking styles were unrelated to other-rated transformational leadership in Study 2. These results partly support and partly challenge the CELM. Practically, this study suggests that leadership may be improved by leaders developing their capacity for behavioral coping.

Cognitive Bias, Entrepreneurial Emotion, and Entrepreneurship Intention

Although numerous studies have explored the factors influencing entrepreneurial activity, there is a lack of a theoretical basis for linking these factors to entrepreneurship behavioral intention. The current study uses the theory of self-regulating attitude to construct a theoretical model of examining the relationship among cognitive bias, entrepreneurial emotion, and entrepreneurship intention. A total of 312 valid samples were collected from college students at a Chinese university. The bootstrapping method was used to test the multi-mediation hypotheses. Our research found that positive entrepreneurial emotion plays a mediating role in the relationship between optimism and entrepreneurship intention, whereas negative entrepreneurial emotion plays a mediating role in the relationship between overconfidence and entrepreneurship intention. These findings underline the importance of a correct understanding of cognitive bias and entrepreneurial emotion in the process of entrepreneurship.