Advertisement

Intuition in Entrepreneurial Cognition

  • Leonie BaldacchinoEmail author
Chapter
Part of the Contributions to Management Science book series (MANAGEMENT SC.)

Abstract

Intuition is widely claimed to play a central role in entrepreneurial cognition. Various well-known entrepreneurs have attributed many of their decisions and much of their success to their gut feelings, and these claims are supported to some extent by the academic literature. Although the past few years have witnessed a marked growth in the body of literature on entrepreneurial intuition, there are still numerous avenues to be explored in this research area because robust empirical evidence is scant, leaving some questions unanswered and others unasked. This chapter provides an overview of what is currently known about intuition in entrepreneurial cognition. It comprises three main sections, namely: ‘Understanding Intuition’, which aims at clarifying what intuition is (and is not), discussing its relationship with experience and expertise and elucidating the link between intuition as a cognitive style and as a cognitive strategy; ‘Appreciating Intuition’, which aims at fostering an appreciation for intuition by reporting some recent research findings which highlight how it may be beneficial in entrepreneurship, particularly in enabling opportunity identification and exploitation; and ‘Developing Intuition’, which consolidates a selection of principles, guidelines and methods that have been proposed by leading authors to foster intuition. The chapter ends with some suggestions for future research on intuition in entrepreneurship.

References

  1. Agor, W. H. (1986). The logic of intuition: How top executives make important decisions. Organizational Dynamics, 14(3), 5–18.CrossRefGoogle Scholar
  2. Allinson, C. W., Chell, E., & Hayes, J. (2000). Intuition and entrepreneurial behaviour. European Journal of Work and Organizational Psychology, 9(1), 31–43.CrossRefGoogle Scholar
  3. Ardichvili, A., Cardozo, R., & Ray, S. (2003). A theory of entrepreneurial opportunity identification and development. Journal of Business Venturing, 18(1), 105–123.CrossRefGoogle Scholar
  4. Baldacchino, L. (2013). Entrepreneurial experience and opportunity identification: The role of intuition and cognitive versatility. Unpublished PhD Thesis, University of Warwick, UK.Google Scholar
  5. Baldacchino, L., Ucbasaran, D., Cabantous, L., & Lockett, A. (2015). Entrepreneurship research on intuition: A critical analysis and research agenda. International Journal of Management Reviews, 17(1), 212–231.CrossRefGoogle Scholar
  6. Baldacchino, L., Ucbasaran, D., Lockett, A., & Cabantous, L. (2014). Capturing intuition through concurrent protocol analysis. In M. Sinclair (Ed.), Handbook of research methods on intuition (pp. 160–175). Cheltenham: Edward Elgar.Google Scholar
  7. Baron, R. A. (2007). Behavioral and cognitive factors in entrepreneurship: Entrepreneurs as the active element in the new venture creation. Strategic Entrepreneurship Journal, 1, 167–182.CrossRefGoogle Scholar
  8. Baron, R. A., & Ensley, M. D. (2006). Opportunity recognition as the detection of meaningful patterns: Evidence from comparisons of novice and experienced entrepreneurs. Management Science, 52, 1331–1344.CrossRefGoogle Scholar
  9. Blackman, D., & Sadler-Smith, E. (2009). The silent and the silenced in organizational knowing and learning. Management Learning, 40(5), 569–585.CrossRefGoogle Scholar
  10. Blume, B. D., & Covin, J. G. (2011). Attributions to intuition in the venture founding process: Do entrepreneurs actually use intuition or just say that they do? Journal of Business Venturing, 26(1), 137–151.CrossRefGoogle Scholar
  11. Boffa, N. (2017). The role of intuition in exploiting entrepreneurial opportunities. Unpublished Master’s Thesis, Edward de Bono Institute, University of Malta, Msida, Malta.Google Scholar
  12. Brigham, K. H., De Castro, J. O., & Shepherd, D. A. (2007). A person-organization fit model of owner-managers’ cognitive style and organizational demands. Entrepreneurship Theory and Practice, 31(1), 29–51.CrossRefGoogle Scholar
  13. Burke, L. A., & Miller, M. K. (1999). Taking the mystery out of intuitive decision making. Academy of Management Executive, 13(4), 91–99.Google Scholar
  14. Chaston, I., & Sadler-Smith, E. (2012). Entrepreneurial cognition, entrepreneurial orientation and firm capability in the creative industries. British Journal of Management, 23, 415–432.Google Scholar
  15. Choi, Y. R., & Shepherd, D. A. (2004). Entrepreneurs’ decisions to exploit opportunities. Journal of Management, 30(3), 377–395.CrossRefGoogle Scholar
  16. Covin, J. G., Slevin, D. P., & Heeley, M. B. (2001). Strategic decision making in an intuitive vs. technocratic mode: Structural and environmental considerations. Journal of Business Research, 52, 51–67.CrossRefGoogle Scholar
  17. Crossan, M. M., Lane, H. W., & White, R. E. (1999). An organizational learning framework: From intuition to institution. Academy of Management Review, 24(3), 522–537.CrossRefGoogle Scholar
  18. Dane, E. (2011a). Capturing intuitions ‘in flight’: Observations from research on attention and mindfulness. In M. Sinclair (Ed.), Handbook of intuition research (pp. 217–226). Cheltenham: Edward Elgar.Google Scholar
  19. Dane, E. (2011b). Paying attention to mindfulness and its effects on task performance in the workplace. Journal of Management, 37(4), 997–1018.CrossRefGoogle Scholar
  20. Dane, E., & Pratt, M. G. (2007). Exploring intuition and its role in managerial decision making. Academy of Management Review, 32(1), 33–54.CrossRefGoogle Scholar
  21. Dane, E., & Pratt, M. G. (2009). Conceptualising and measuring intuition: A review of recent trends. In G. Hodgkinson & J. K. Ford (Eds.), International review of industrial and organizational psychology (Vol. 24, pp. 1–40).Google Scholar
  22. Dew, N., Read, S., Sarasvathy, S. D., & Wiltbank, R. (2009). Effectual versus predictive logics in entrepreneurial decision-making: Differences between experts and novices. Journal of Business Venturing, 24, 287–309.CrossRefGoogle Scholar
  23. Dimov, D. (2007a). From opportunity insight to opportunity intention: The importance of person-situation learning match. Entrepreneurship Theory and Practice, 31(4), 561–583.CrossRefGoogle Scholar
  24. Dimov, D. (2007b). Beyond the single-person, single-insight attribution in understanding entrepreneurial opportunities. Entrepreneurship Theory and Practice, 31(5), 713–731.CrossRefGoogle Scholar
  25. Dutta, D. K., & Crossan, M. (2005). The nature of entrepreneurial opportunities: Understanding the process using the 4I organizational learning framework. Entrepreneurship Theory and Practice, 29(4), 425–449.CrossRefGoogle Scholar
  26. Dutta, D. K., & Thornhill, S. (2008). The evolution of growth intentions: Toward a cognition-based model. Journal of Business Venturing, 23(3), 307–332.CrossRefGoogle Scholar
  27. Elbanna, S., Child, J., & Braga Rodriguez, S. (2010). Intuition in strategic decision-making: The role of context. Academy of Management Conference working paper.Google Scholar
  28. Ericsson, K. A., Prietula, M. J., & Cokely, E. T. (2007). The making of an expert. Harvard Business Review, July–August, 1–8.Google Scholar
  29. Ericsson, K. A., & Simon, H. A. (1993). Protocol analysis: Verbal reports as data. MA, USA: MIT Press.Google Scholar
  30. Evans, J. S. (2008). Dual-processing accounts of reasoning, judgment and social cognition. Annual Review of Psychology, 59, 255–278.PubMedCrossRefGoogle Scholar
  31. Evans, J. S. (2010). Intuition and reasoning: A dual-process perspective. Psychological Inquiry, 21(4), 313–326.CrossRefGoogle Scholar
  32. Fiet, J. (2002). The systematic search for entrepreneurial discoveries. London: Quorum Books.Google Scholar
  33. Forbes, D. P. (2005). Are some entrepreneurs more overconfident than others? Journal of Business Venturing, 20, 623–640.CrossRefGoogle Scholar
  34. Gibcus, P., Vermeulen, P. A., & Radulova, E. (2008). The decision-making entrepreneur: A literature review. In P. A. Vermeulen & P. L. Curşeu (Eds.), Entrepreneurial strategic decision-making: A cognitive perspective (pp. 11–40). UK: Edward Elgar.Google Scholar
  35. Gustafsson, V. (2006). Entrepreneurial decision making: Individuals, tasks and cognitions. MA: Edward Elgar.Google Scholar
  36. Hmieleski, K. M., & Baron, R. A. (2008). When does entrepreneurial self-efficacy enhance versus reduce firm performance? Strategic Entrepreneurship Journal, 2(1), 57–72.CrossRefGoogle Scholar
  37. Hodgkinson, G. P., & Clarke, I. (2007). Exploring the cognitive significance of organizational strategizing: A dual-process framework and research agenda. Human Relations, 60(1), 243–255.CrossRefGoogle Scholar
  38. Hodgkinson, G. P., Langan-Fox, J., & Sadler-Smith, E. (2008). Intuition: A fundamental bridging construct in the behavioural sciences. British Journal of Psychology, 99, 1–27.PubMedCrossRefGoogle Scholar
  39. Hodgkinson, G. P., & Sadler-Smith, E. (2011). Investigating intuition: Beyond self-report. In M. Sinclair (Ed.), Handbook of intuition research (pp. 52–66). Cheltenham: Edward Elgar.Google Scholar
  40. Hodgkinson, G. P., Sadler-Smith, E., Burke, L. A., Claxton, G., & Sparrow, P. R. (2009). Intuition in organizations: Implications for strategic management. Long Range Planning, 42, 277–297.CrossRefGoogle Scholar
  41. Hogarth, R. (2001). Educating intuition. Chicago: University of Chicago Press.Google Scholar
  42. Hogarth, R. (2008). On the learning of intuition. In H. Plessner, C. Betsch, & T. Betsch (Eds.), Intuition in judgment and decision making (pp. 91–105). New York, NY: Taylor and Francis Psychology Press.Google Scholar
  43. Isenberg, D. J. (1984). How senior managers think. Harvard Business Review, November–December, 81–90.Google Scholar
  44. Iversen, J., Jørgensen, R., & Malchow-Møller, N. (2008). Defining and measuring entrepreneurship. Foundations and Trends® in Entrepreneurship, 4, 1–63.CrossRefGoogle Scholar
  45. Khatri, N., & Ng, H. A. (2000). The role of intuition in strategic decision making. Human Relations, 53, 57–86.CrossRefGoogle Scholar
  46. Kickul, J., Gundry, L. K., Barbosa, S. D., & Whitcanack, L. (2009). Intuition versus analysis? Testing differential models of cognitive style on entrepreneurial self-efficacy and the new venture process. Entrepreneurship Theory and Practice, 33(2), 439–453.CrossRefGoogle Scholar
  47. Klein, G. (2004). The power of intuition: How to use your gut feelings to make better decisions at work. New York: Currency Doubleday.Google Scholar
  48. Louis, M. R., & Sutton, R. I. (1991). Switching cognitive gears: From habits of mind to active thinking. Human Relations, 44, 55–76.CrossRefGoogle Scholar
  49. Matzler, K., Bailom, F., & Moordian, T. A. (2007). Intuitive decision making. MIT Sloan Management Review, 49(1), 12–15.Google Scholar
  50. Miller, C. C., & Ireland, R. D. (2005). Intuition in strategic decision making: Friend or foe in the fast-paced 21st century? Academy of Management Executive, 19(1), 19–30.Google Scholar
  51. Mitchell, R. K., Busenitz, L., Lant, T., McDougall, P. P., Morse, E. A., & Smith, J. B. (2002). Toward a theory of entrepreneurial cognition: Rethinking the people side of entrepreneurship research. Entrepreneurship Theory and Practice, 27(2), 93–104.CrossRefGoogle Scholar
  52. Mitchell, J. R., Friga, P. N., & Mitchell, R. K. (2005). Untangling the intuition mess: Intuition as a construct in entrepreneurship research. Entrepreneurship Theory and Practice, 29(6), 653–679.CrossRefGoogle Scholar
  53. Noddings, N., & Shore, P. J. (1998). Awakening the inner eye: Intuition in education. NY: Educator’s International Press.Google Scholar
  54. Penman, D. (2015). Mindfulness for creativity: Adapt, create and thrive in a frantic world. London: Piatkus.Google Scholar
  55. Peters, E., Västfjäll, D., Gärling, T., & Slovic, P. (2006). Affect and decision making: A “hot” topic. Journal of Behavioral Decision Making, 19, 79–85.CrossRefGoogle Scholar
  56. Ravasi, D., & Turati, C. (2005). Exploring entrepreneurial learning: A comparative study of technology development projects. Journal of Business Venturing, 20(1), 137–164.CrossRefGoogle Scholar
  57. Sadler-Smith, E. (2004). Cognitive style and the management of small and medium-sized enterprises. Organization Studies, 25(2), 155–181.CrossRefGoogle Scholar
  58. Sadler-Smith, E. (2008). Inside intuition. Oxon: Routledge.Google Scholar
  59. Sadler-Smith, E. (2010). The intuitive mind: Profiting from the power of your sixth sense. West Sussex: Wiley.Google Scholar
  60. Sadler-Smith, E., & Shefy, E. (2004). The intuitive executive: Understanding and applying ‘gut feel’ in decision-making. Academy of Management Executive, 18(4), 76–91.Google Scholar
  61. Sadler-Smith, E., & Shefy, E. (2007). Developing intuitive awareness in management education. Academy of Management Learning and Education, 6(2), 186–205.CrossRefGoogle Scholar
  62. Shane, S., & Venkataraman, S. (2000). The promise of entrepreneurship as a field of research. Academy of Management Review, 25(1), 217–226.Google Scholar
  63. Simon, H. A. (1987). Making management decisions: The role of intuition and emotion. Academy of Management Executive, 1(1), 57–64.Google Scholar
  64. Simon, H. A. (2000). Bounded rationality in social science: Today and tomorrow. Mind and Society, 1(1), 29–39.CrossRefGoogle Scholar
  65. Sinclair, M., & Ashkanasy, N. (2005). Intuition: Myth or a decision-making tool? Management Learning, 36(3), 353–370.CrossRefGoogle Scholar
  66. Ucbasaran, D., Baldacchino, L., & Lockett, A. (2015). Do it again! Recent developments in the study of habitual entrepreneurship and a look to the future. In F. Welter & T. Baker (Eds.), Routledge companion to entrepreneurship (pp. 131–145). Oxon: Routledge.Google Scholar
  67. Ucbasaran, D., Wright, M., Westhead, P., & Busenitz, L. (2003). The impact of entrepreneurial experience on opportunity identification and exploitation: Habitual and novice entrepreneurs. In J. A. Katz & D. A. Shepherd (Eds.), Cognitive approaches to entrepreneurship. Advances in entrepreneurship, firm emergence and growth (Vol. 6, pp. 231–263). Bingley, UK: Emerald.Google Scholar
  68. Unger, J. M., Keith, N., Hilling, C., Gielnik, M. M., & Frese, M. (2009). Deliberate practice among South African small business owners: Relationships with education, cognitive ability, knowledge and success. Journal of Occupational and Organizational Psychology, 82, 21–44.CrossRefGoogle Scholar
  69. Vaghley, I. P., & Julien, P. A. (2010). Are opportunities recognized or constructed? An information perspective on entrepreneurial opportunity identification. Journal of Business Venturing, 25, 73–86.CrossRefGoogle Scholar
  70. Weisberg, R. W. (1999). Creativity and knowledge: A challenge to theories. In R. J. Sternberg (Ed.), Handbook of creativity. Cambridge: Cambridge University Press.Google Scholar
  71. Wymenga, P., Spanikova, V., Barker, A., Konings, J., & Canton, E. (2012). EU SMEs in 2012: At the crossroads. Annual Report on Small and Medium-Sized Enterprises in the EU, 2011/12. Rotterdam: Ecorys.Google Scholar

Copyright information

© Springer Nature Switzerland AG 2019

Authors and Affiliations

  1. 1.The Edward de Bono Institute for the Design and Development of ThinkingUniversity of MaltaMsidaMalta

Personalised recommendations