Entrepreneurs often use intuition to explain their actions. But because entrepreneurial intuition is poorly defined in the research literature: the “intuitive” is confused with the “innate,” what is systematic is overlooked, and unexplained variance in entrepreneurial behavior remains high. Herein we: (1) bound and define the construct of entrepreneurial intuition within the distinctive domain of entrepreneurship research; (2) apply a levels–of–consciousness logic and process dynamism approach to; (3) organize definitions, antecedents, and consequences; and (4) produce propositions that lead to a working definition of entrepreneurial intuition. Our analysis renders intuition more usable in entrepreneurship research, and more valuable in practice.
Get full access to this article
View all access options for this article.
References
1.
AbelsonR.P. & BlackJ.B. (1986). Introduction. In GalambosJ.A., AbelsonR.P., & BlackJ.B. (Eds), Knowledge structures (pp. 1–18). Hillsdale, NJ: Lawrence Erlbaum Associates, Inc.
2.
AgorW.H. (1984). Using intuition to manage organizations in the future. Business Horizons, 27(5), 49–54.
3.
AgorW.H. (1989). Introduction. In AgorW.H. (Ed.), Intuition in organizations (pp. 8–19). Newbury Park, CA: Sage Publications.
4.
AllinsonC.W., ChellE., & HayesJ. (2000). Intuition and entrepreneurial behaviour. European Journal of Work and Organizational Psychology, 9, 31–43.
5.
BaarsB.J. (1992). A plea for simplicity. American Journal of Psychology, 105(4), 591–597.
6.
BacharachS.B. (1989). Organizational theories: Some criteria for evaluation. Academy of Management Review, 14(4), 496–515.
7.
BagozziR.P. & FornellC. (1982). Theoretical concepts, measurement, and meaning. In FornellC. (Ed.), A second generation of multivariate analysis (Vol. 2, pp. 24–38). New York: Praeger.
8.
BargenP.V., FreedmanD., & PagesE.R. (2003). The rise of the entrepreneurial society. Economic Development Quarterly, 17(4), 315–324.
9.
BarnardC. (1938). The functions of the executive. Cambridge, MA: Harvard University Press.
10.
BastickT. (1982). Intuition, how we think and act. Toronto: John Wiley & Sons.
11.
BehlingO. & EckelH. (1991). Making sense out of intuition. Academy of Management Executive, 5, 46–54.
12.
BennettR.H. (1998). The importance of tacit knowledge in strategic deliberations and decisions. Management Decision, 36, 589–597.
13.
BlockB. (1990). Intuition creeps out of the closet and into the boardroom. Management Review, 79(5), 58–60.
14.
BronowskiJ. & MazlishB. (1960). The Western intellectual tradition: From Leonardo to Hegel. New York: Harper Torchbooks.
15.
BungeM.A. (1983). Exploring the world: Epistemology and methodology (treatise on basic philosophy). Dordrecht: D. Reidel.
16.
BurkeL.A. & MillerM.K. (1999). Taking the mystery out of intuitive decision making. Academy of Management Executive, 13, 91–99.
17.
BusenitzL. & LauC. (1996). A cross–cultural cognitive model of new venture creation. Entrepreneurship Theory and Practice, 20(4), 25–39.
18.
CampbellD.T. & FiskeD.W. (1959). Convergent and discriminant validation by the multitrait–multimethod matrix. Psychological Bulletin, 56, 81–105.
19.
CarlsonR.A. (1992). Starting with consciousness. American Journal of Psychology, 105(4), 598–604.
20.
ChiM.T.H., GlaserR., & ReesE. (1982). Expertise in problem solving. In SternbergR. (Ed.), Advances in the psychology of human intelligence (Vol. 1, pp. 17–76). Hillsdale, NJ: Erlbaum.
21.
ChoiY.R. & ShepherdD.A. (2004). Entrepreneurs’ decisions to exploit opportunities. Journal of Management, 30(3), 377–395.
22.
ChurchillG.A.Jr. (1979). A paradigm for developing better measures of marketing constructs. Journal of Marketing Research, 16, 64–73.
23.
ClarkeI. & MackanessW. (2001). Management “intuition”: An interpretative account of structure and content of decision schemas using cognitive maps. Journal of Management Studies, 38, 147–172.
24.
ConnerK.R. (1991). A historical comparison of resource–based theory and five schools of thought within industrial organization economics: Do we have a new theory of the firm?Journal of Management, 17(1), 121–154.
25.
CookT.D. & CampbellD.T. (1979). Quasi–experimentation: Design and analysis issues for field settings. Boston: Houghton Mifflin Company.
26.
CovinJ.G., SlevinD.P., & HeeleyM.B. (2001). Strategic decision making in an intuitive vs. technocratic mode: Structural and environmental considerations. Journal of Business Research, 52, 51–67.
27.
CrossanM.M., LaneH.W., & WhiteR.E. (1999). An organizational learning framework: From intuition to institution. Academy of Management Review, 24, 522–537.
28.
FiolC.M. & HuffA.S. (1992). Maps for managers: Where are we? Where do we go from here?Journal of Management Studies, 29(3), 267–285.
29.
FoxH.W. (1981). The frontiers of strategic planning: Intuition or formal models. Management Review, 70(4), 8–14.
30.
GaglioC.M. (1997). Opportunity identification: Review, critique and suggested research directions. In KatzJ.A. (Ed.), Advances in entrepreneurship, firm emergence and growth (Vol. 3, pp. 139–202). Greenwich, CT: JAI Press.
31.
GaglioC.M. & KatzJ.A. (2001). The psychological basis of opportunity identification: Entrepreneurial alertness. Small Business Economics, 16(2), 95–111.
32.
GlaserR. (1984). Education and thinking. American Psychologist, 39, 93–104.
33.
GonzalesA. (2001). How to use your intuition to make good business decisions. The Business Journal, 22(9), 33.
34.
GordonS.E. (1992). Implications of cognitive theory for knowledge acquisition. In HoffmanR.R. (Ed.), The psychology of expertise: Cognitive research and empirical AI. (pp. 99–120). New York: Springer–Verlag New York, Inc.
35.
HarperS.C. (1989). Intuition: What separates executives from managers. In AgorW.H. (Ed.), Intuition in organizations (pp. 111–124). Newbury Park, CA: Sage Publications.
36.
HarveyM. & EvansR. (1995). Strategic windows in the entrepreneurial process. Journal of Business Venturing, 10(5), 331–347.
37.
HayashiA.M. (2001). When to trust your gut. Harvard Business Review, 79(2), 59–65.
38.
HayekF.A.V. (1945, September). The use of knowledge in society. The American Economic Review, 35, 519–520.
39.
HisrichR.D. & JankowiczA.D. (1990). Intuition in venture capital decisions: An exploratory study using a new technique. Journal of Business Venturing, 5, 49–62.
40.
HobbesT. (1651). Leviathan. In J. Bronowski & Mazlish, B. (1960). The Western intellectual tradition: From Leonardo to Hegel. New York: Harper Torchbooks.
IsaackT.S. (1978). Intuition: An ignored dimension of management. Academy of Management Review, 3, 917–922.
43.
IsenbergD.J. (1984). How senior managers think. Harvard Business Review, 62(6), 81–90.
44.
De JongT. & Ferguson–HesslerM.G.M. (1986). Cognitive structures of good and poor novice problem solvers in physics. Journal of Educational Psychology, 78, 279–288.
45.
KhatriN. & NgA. (2000). The role of intuition in strategic decision making. Human Relations, 53, 57–86.
46.
KirznerI. (1979). Perception, opportunity, and profit. Chicago: University of Chicago Press.
47.
KirznerI.M. (1980). The primacy of entrepreneurial discovery. In KirznerI.M., HannahL., McKendrickN., VinsonN., WickendenK., KnightA.et al. (Eds), Prime mover of progress: The entrepreneur in capitalism and socialism (Vol. 23, pp. 3–28). London: The Institute of Economic Affairs.
48.
KirznerI. (1985). Discovery and the capitalist process. Chicago: University of Chicago Press.
49.
KleinG.A. (2003). Intuition at work: Why developing your gut instincts will make you better at what you do. New York: Currency/Doubleday.
50.
KoestlerA. (1976). The act of creation. London: Hutchinson.
51.
KriegerM. (2002). St. Paul, Minn., small retailers rely on instincts for crucial holiday sales. Knight Ridder Tribune Business News. Washington.
52.
LankA.G. & LankE.A. (1995). Legitimizing the gut feel: The role of intuition in business. Journal of Managerial Psychology, 10, 18–23.
53.
von LeibnizG.W. (1714). Monadology, paragraph 17 (X. X. Latta Trans).
54.
LewisD. & LeyserK. (2002). Unlocking the magic of your mind—using intuition to make important management decisions. The British Journal of Administrative Management, September/October (33), 12–15.
55.
LockeJ. (1979 1690]) Essay concerning human understanding. Oxford: Oxford University Press.
56.
LongW. & McMullanW.E. (1984). Mapping the new venture opportunity identification process. In HornadayJ.A., TardleyF.A., TimmonsJ.A., & VesperK.A. (Eds), Frontiers of entrepreneurship research (pp. 567–590). Wellesley, MA: Babson College.
McGrathR.G. (1999). Falling forward: Real options reasoning and entrepreneurial failure. Academy of Management Review, 24(1), 13–30.
59.
ManimalaM.J. (1992). Entrepreneurial heuristics: A comparison between high PI (pioneering–innovative) and low PI ventures. Journal of Business Venturing, 7, 477–504.
60.
MitchellR.K. (2001). Transaction cognition theory and high performance economic results (1st ed). Victoria, BC: International Centre for Venture Expertise. Retrieved January 20, 2004, from http://www.ronaldmitchell.org/publications.htm
61.
MitchellR.K. (2003). A transaction cognition theory of global entrepreneurship. In KatzJ.A. & ShepherdD.A. (Eds), Advances in entrepreneurship, firm emergence and growth: Cognitive approaches to entrepreneurship research (pp. 183–231). Greenwich, CT: JAI Press.
62.
MitchellR.K., BusenitzL., LantT., McDougallP.P., MorseE.A., & SmithB. (2002a). Entrepreneurial cognition theory: Rethinking the people side of entrepreneurship research. Entrepreneurship: Theory and Practice, 27(2), 93–104.
63.
MitchellR.K., BusenitzL., LantT., McDougallP.P., MorseE.A., & SmithB. (2004). The distinctive and inclusive domain of entrepreneurial cognition research. Entrepreneurship Theory and Practice, 28(6), 505–517.
64.
MitchellR.K., SmithJ.B., MorseE.A., SeawrightK.W., PeredoA.M., & McKenzieB. (2002b). Are entrepreneurial cognitions universal? Assessing entrepreneurial cognitions across cultures. Entrepreneurship Theory and Practice, 26(4), 9–32.
65.
MitchellR.K., SmithB., SeawrightK.W., & MorseE.A. (2000). Cross–cultural cognitions and the venture creation decision. Academy of Management Journal, 43(5), 974–993.
66.
MosakowskiE. (1998). Entrepreneurial resources, organizational choices, and competitive outcomes. Organization Science: A Journal of the Institute of Management Sciences, 9(6), 625–643.
67.
MoscovitchM. (1989). Confabulation and the frontal systems: Strategic versus associated retrieval in neuropsychological theories of memory. In RoedigerH.L. & CraikF.I.M. (Eds), Varieties of memory and consciousness: Essays in honour of Endel Tulving (pp. 133–161). Hillsdale, NJ: Lawrence Erlbaum Associates, Inc.
68.
NeisserU. (1967). Cognitive Psychology. New York: Appleton–Century–Crofts.
69.
NeisserU. (1976). Cognition and reality. San Francisco: Free Press.
70.
NormanD.A. & ShalliceT. (1986). Attention to action. Willed and automatic control of behavior. In DavidsonR.J., SchwartzG.E., & ShapiroD. (Eds), Consciousness and self–regulation (Vol. 4, pp. 1–18). New York: Plenum Press.
71.
NunnallyJ.C. (1978). Psychometric Theory (2nd ed). New York: McGraw–Hill.
72.
OlsonP.D. (1985). Entrepreneurship: Process and abilities. American Journal of Small Business, 10, 25–31.
73.
ParikhJ. (1994). Intuition: The new frontier of management. Oxford: Blackwell.
74.
PeterJ.P. (1981). Construct validity: A review of basic issues and marketing practices. Journal of Marketing Research, 18, 133–145.
75.
PosnerM.I. (1973). Cognitions: An introduction. Glenview, IL: Scott, Foresman and Company.
76.
PrietulaM.J. & SimonH.A. (1989). The experts in your midst. Harvard Business Review, 67(1), 120–124.
77.
RiquelmeH. & WatsonJ. (2002). Do venture capitalists’ implicit theories on new business success/failure have empirical validity?International Small Business Journal, 20, 395–418.
RowanR. (1986). The intuitive manager. Boston, Toronto: Little, Brown and Company.
80.
SarasvathyS.D. (2001). Causation and effectuation: Toward a theoretical shift from economic inevitability to entrepreneurial contingency. Academy of Management Review, 26(2), 243–264.
81.
SchacterD.L. (1989). On the relation between memory and consciousness: Dissociable interactions and conscious experience. In RoedigerH.L. & CraikF.I.M. (Eds), Varieties of memory and consciousness: Essays in honour of Endel Tulving (pp. 355–389). Hillsdale, NJ: Lawrence Erlbaum Associates, Inc.
82.
SchneiderW. & DetweilerM. (1987). Connectionist/control architecture for working memory. In BowerG.H. (Ed.), The psychology of learning and motivation (Vol. 21, pp. 53–119). San Diego, CA: Academic Press.
83.
SchwabD.P. (1980). Construct validity in organizational behavior. In CummingsL.L. & StawB. (Eds), Research in organizational behavior (Vol. 2, pp. 3–44). Greenwich, CT: JAI Press.
84.
ShaneS. & VenkataramanS. (2000). The Promise of entrepreneurship as a field of research. Academy of Management Review, 25(1), 217–226.
85.
ShapiroS. & SpenceM.T. (1997). Managerial intuition: A conceptual and operational framework. Business Horizons, 40(1), 63–68.
86.
ShepherdD.A. & ZacharakisA.L. (1997). Conjoint analysis: A window of opportunity for entrepreneurship research. In KatzJ.A. (Ed.), Advances in Entrepreneurship, Firm Emergence and Growth (Vol. 3, pp. 203–248). Greenwich, CT: JAI Press.
87.
ShepherdD.A., ZacharakisA., & BaronR.A. (2003). VCs’ decision processes: Evidence suggesting more experience may not always be better. Journal of Business Venturing, 18(3), 381–401.
88.
SimonH.A. (1987). Making management decisions: The role of intuition and emotion. Academy of Management Executive, 1, 57–64.
89.
SquireL.M. (1987). Memory and brain. New York: Oxford University Press.
90.
TazziaE. (2001). Nurturing your natural talents. Advertising Age (Midwest Region Edition), 72, 20.
91.
VaughanF.E. (1989). Varieties of intuitive experience. In AgorW.H. (Ed.), Intuition in organizations (pp. 40–61). Newbury Park, CA: Sage Publications.
92.
VenkataramanS. (1997). The distinctive domain of entrepreneurship research. In KatzJ. (Ed.), Advances in entrepreneurship, firm emergence and growth (Vol. 3, pp. 119–138). Greenwich, CT: JAI Press.
93.
WalshJ.P. (1995). Managerial and organizational cognition: Notes from a trip down memory lane. Organization Science, 6(6), 280–321.
94.
WierzbickiA.P. (1997). On the role of intuition in decision making and some ways of multicriteria aid of intuition. Journal of Multi-Criteria Decision Analysis, 6, 65–76.
95.
WilliamsC. (2002). Your road map to success. Broker World, 22, 66–68.
96.
YunosM.G.M. (2002). Building an innovation–based economy: The Malaysian technology business incubator experience. Journal of Change Management, 3(2), 177–188.
