Entrepreneurial intuition is the affectively-charged recognition and evaluation of a business venturing opportunity arising as a result of involuntary, rapid, non-conscious, associative processing. This article integrates theories of dual-processing and models of business venturing (opportunity recognition, evaluation and exploitation) in a 'default-intervention model of entrepreneurial intuition' which links the defaults of intuitive expertise, cognitive style, somatic state and the affect heuristic with System 2 interventions and the contingencies of the decision environment. Six research propositions are offered with suggestions for how they can be tested. The theoretical and practical implications of entrepreneurial intuition are discussed in terms of the unfolding of a research agenda relating to this important but undertheorized and under-researched construct in work and organizational psychology.Keywords: decision-making; dual-process; dual-system; entrepreneurship; intuition Entrepreneurial intuition 2
INTRODUCTIONEntrepreneurship is the 'engine room' of the economy (Mitchell, 2005), and successful entrepreneurs often attribute their accomplishments to the 'knack' of being able to identify and judge business opportunities 'intuitively'. The popular business press is replete with examples of entrepreneurs crediting their successes to 'instinct' (Mehta, 2013), 'hunch' (Barrow, 2009), or 'gut feel' (Welch & Byrne, 2001). But should the claims of such 'intuitive entrepreneurs' be taken with a pinch of salt? On the other hand how much do behavioural scientists know about intuition's role in the recognition, evaluation, and exploitation of business opportunities? This article addresses these questions by: developing a model of intuitive processing in business venturing decisions; offering a number of research propositions and empirical directions; discussing the theoretical and practical significance of an improved understanding of 'entrepreneurial intuition'. This research is part of an on-going endeavour to "put the person back into entrepreneurship research" (Rauch & Frese, 2007: 353), further explaining the differences between entrepreneurs and non-entrepreneurs and between successful and unsuccessful business venturing decisions (e.g. Utsch & Rauch, 2000), and connecting entrepreneurship research with wider debates and developments in the behavioural and brain sciences (e.g. Reimann & Bechara, 2010).
BACKGROUNDThe proposed theoretical model integrates the construct of intuition with the process of entrepreneurship. Intuitions are involuntary "affectively charged judgments that arise through rapid non-conscious and holistic associations" (Dane & Pratt, 2007: 40). They are an outcome of variety of cognitive and affective processes (e.g. recognition, pattern matching, somatic marking) operating within and between a number of processing systems and subsystems (e.g. System 1 and System 2, Type 1 and Type 2) and brain regions (e.g. ventromedial pre-frontal cortex, amygdala) (Bechara & Damasio, 200...