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The Intuitive Executive: Understanding and Applying ‘Gut Feel’ in Decision-Making
Abstract
Even though the conditions under which executives operate may sometimes limit or even preclude the use of rational analysis, it is nevertheless the norm in many organizational decision processes. Intuition, on the other hand, is often considered to be the antithesis of this approach and is usually overlooked or disregarded in decision-making. However, in recent years there has been resurgence of interest in intuition, perhaps because of some dissatisfaction with rationality and its limits and also because some psychologists are now arguing that much of cognition occurs automatically outside of consciousness and in the realm of intuition. Knowledge of intuition has made significant advances in recent years, and it can now be understood as a composite phenomenon involving interplay between knowing (intuition-as-expertise) and sensing (intuition-as-feeling). Furthermore, rather than being set in opposition to each other, intuition and rational analysis are better conceived of as two parallel systems of knowing. Against this backdrop we consider the significance of the two facets of intuition for executive decision-making processes. From this integrated perspective we offer some guidelines whereby executives can make more effective and intelligent use of intuition in ways that acknowledge its limitations while maximizing its potential in enhancing firm success in complex and fast-moving business environments.
... Although Eisenhardt (1999) first highlighted the importance of collective intuition, research has remained almost exclusively focused on the individual level of analysis (Dane & Pratt, 2007;Miller & Ireland, 2005;Sadler-Smith & Shefy, 2004). We directly build on this body of literature, by advancing intuition research onto the study of intuition in a team-based decision context. ...
... The rational model of strategic decision-making prevails across the curricula of most business schools (Sadler-Smith & Shefy, 2004), whereas the development of awareness of intuition tends to be neglected (Sadler-Smith & Shefy, 2007). While business schools have long embraced experiential activities to nurture interpersonal skills (e.g., role play exercises), most have been slow to embrace methods which might develop intuitive awareness, skills, and competencies. ...
... However, they often try to hide the fact they rely on intuition and instead they seek out objective evidence to provide a post-hoc rationalization for their intuitive judgments (Elbanna et al., 2013). Hence, executives appear to have concerns that intuition is unscientific (Sadler-Smith & Shefy, 2004), perhaps in part because of the afore mentioned bias towards rational models of decision-making taught in most business schools. Our study goes some way to attenuating concerns about the viability of intuition in strategic decision-making. ...
... When an immediate bodily reaction emerges within seconds after seeing the entrepreneur (Huang & Pearce, 2015), it relates not only to the thin-sliced information about the investment opportunity but also to the communication skills of the entrepreneur who presents it (Brush et al., 2012;Parhankangas & Ehrlich, 2014). Such an embodied experience resembles gut instinct or a bodily sense (Sadler-Smith & Shefy, 2004), which involves both conscious and unconscious elements. While gut instinct rests on swift conscious reflections of the distinctiveness of the opportunity (Sanders & Boivie, 2004), it also involves direct knowing and unconscious elements (Sinclair & Ashkanasy, 2005). ...
... It seems reasonable to suggest that when either positive or mixed emotions are the emotive grounding in the first impression, they provide a feeling-based signal for a course of action (LeDoux, 1996;Sadler-Smith & Shefy, 2004), such as deciding to continue screening, whereas negative emotions will be associated with a negative first impression, withdrawal, and immediate rejection. Our propositions, therefore, suggest that only those investment opportunities that spark positive or mixed emotions in angel investors have any chance of getting beyond the initial screening stage. ...
... In so doing, angel investors can utilize both deliberative and intuitive systems to support their evaluation. Moreover, although these systems largely interact seamlessly (Denes-Raj & Epstein, 1994;Rae & Wang, 2015;Sadler-Smith & Shefy, 2004), perhaps the intuitive system dominates while the investor is drawing on emotions in the selection stage, whereas the deliberative system might dominate the analysis in the postselection stage and during the due diligence process that calls for rationally charged analytical processing and careful calculations of future returns. ...
... Thinking, information processing, task-related beliefs, assumptions, and perspectives are all influenced by cognitive style, a specific form of cognitive diversity (Leybourne and Sadler-Smith, 2006). Intuition and rationality are complementary to the extent that managers can learn how to use each to fit the demands of particular decision-making situations (Sadler-Smith and Shefy, 2004). Managers' rational and intuitive cognitive styles and the way they organize information, either local or global, influence their behavior, including decision-making (Sadler-Smith, 2004), intentions of individuals to create new businesses (Sadler-Smith, 2016), and the ability to deal with problems (Carnabuci and Di oszegi, 2015). ...
... This study focuses on the essential cognitive styles for managers' decision-making: rational/analytical and intuitive styles. These cognitive styles are complementary, and managers can learn to utilize each style to adapt to specific situations (Sadler-Smith and Shefy, 2004). The way managers organize information, whether locally or globally, and their rational or intuitive cognitive styles influence their behavior, including decision-making (Sadler-Smith, 2004), entrepreneurial intentions (Sadler-Smith, 2016), and problem-solving abilities (Carnabuci and Di oszegi, 2015). ...
... In this regard, managers' awareness of the analytical processes necessary for international markets (Johnson and Schaltegger, 2016) enables them to identify current opportunities and develop successful strategic responses (Hough and White, 2003). Acquiring knowledge through mindful reasoning and analytical thought (Sadler-Smith and Shefy, 2004), as well as effectively responding to uncertainty (Hodgkinson et al., 2009), are crucial for managers in this context. Furthermore, cognitive styles are positively associated with firm performance in uncertain business environments compared to stable environments (Khatri and Ng, 2000). ...
Purpose
The dynamism of competition in international markets requires managers to react accordingly and ensure the firm's survival and competitiveness. This study examines the impact of cognitive styles and dynamic managerial capabilities (DMC) on a firm's international performance and the mediating role of these capabilities in the relationship between cognitive styles and international performance.
Design/methodology/approach
This study adopts a quantitative cross-sectional research design, employing a sample of 306 firm owner-managers from exporting companies in Kosovo.
Findings
The findings suggest that managers' cognitive styles positively influence firm international performance, including their impact on DMC. Results also indicate that only managerial cognition mediates cognitive styles' effects on a firm's international performance, compared to managers' social capital.
Originality/value
In this study, the authors contribute to the literature by integrating cognitive styles with DMC in a transition country. Moreover, the authors demonstrate that DMC mediate the impact of cognitive styles on the firm international performance.
... This includes how the level of (properly defined and evaluated) expertise affects the effectiveness of intuitive expertise. Sadler-Smith & Burke, 2009;Sadler-Smith & Shefy, 2004. My contribution to this symposium is to offer my critical reflections on this body of work and outline future research directions based on a combination of methods less reliant on self-report techniques of the sort that invite participants to introspect directly on the contents of their cognition and/or on the nature of the cognitive processes they believe to underpin the inner workings of their minds. ...
... Clarke & Mackaness, 2001;Sadler-Smith & Burke, 2009) and self-reflective journaling practices (cf. Sadler-Smith & Burke, 2009;Sadler-Smith & Shefy, 2004, because a central feature of bona fide intuitions is that they typically elude such deeper analysis and interpretation (Claxton, 1998). ...
... The third and final concern I want to highlight is the age-old problem dating back to the origins of the cognitive revolution in psychology, namely, the question of w hether self-report elicitation techniques of the sort advocated by Clarke and Mackaness (2001), Sadler-Smith and Shefy (2004, and Sadler-Smith and Burke (2009) can ever ultimately capture bona fide knowledge representations of any form, or whether instead they merely reflect the by-products of participants' dutiful compliance with the demand characteristics of the primary research tasks thus presented to them (cf. Ericsson & Simon, 1980;Nisbett & Wilson, 1977;Wilson & Schooler, 1991). ...
... Intuition is not instinct, which is innate (Hogarth 2010). Rationality and intuition are also not opposites (Sadler-Smith and Shefy 2004;Tonetto and Tamminen 2015). Dictionaries commonly define intuition as something to be trusted because of "gut feelings" (Cambridge Dictionary, n.d.). ...
... Fundamental to intuition is gaining and seeking feedback (Hogarth 2010), and playing devil's advocate with oneself to identify, account for, and mitigate one's biases, whether emerging from confirmation bias, hindsight bias, or over-confidence (Sadler-Smith and Shefy 2004). Within these parameters, honing informed intuition is about empowering our experience of the social world within our research. ...
In political science, positivist scholars often approach intuition cautiously as something best avoided or improved by methodological training. Meanwhile, interpretive scholars typically laud "hunches" as necessary guiding logics. This article introduces the novel concept of informed intuition, drawing on understandings of intuition in cognitive psychology and organizational behavior that emphasize the importance of learning and feedback in developing and using intuition. Many political scientists agree that they use intuition privately but rarely acknowledge it in published works. As such, the article argues for harnessing, acknowledging, recognizing, and legitimizing the role of informed intuition across methodological and epistemic divides. Specifically, the article demonstrates the importance of acknowledging the role of informed intuition regarding (1) the logics of research (inductive, deductive, or abductive), and (2) case selection. In doing so, the article aligns with discussions of transparency to argue that researchers should also consider demonstrating intuitive openness to enhance research integrity.
... However, recent research challenges this perspective, showing the potential of heuristics in helping people come to good decisions [2,25]. In certain situations, intuitive decision-making with heuristics can lead to superior outcomes compared to rational, analytical reasoning [16,58], especially in high-risk, high-uncertainty scenarios [34]. For instance, managers employing heuristics sometimes make more effective decisions than those relying on statistical procedures like logistic regression [46]. ...
... Our findings, however, suggest that analyst deviations in graphical inference could indeed be useful. Thus, rather than solely focusing on 'debiasing' human reasoning (e.g., by seeking to align human responses with rational models [69]), our work suggests the need for a more balanced perspective that acknowledges the utility of both rational and intuitive thinking [16,26,31,58], even if the latter is subject to biases. Instead of attempting to eliminate these biases in visual analytics, a more fruitful approach involves considering how to productively leverage analyst intuition. ...
People commonly utilize visualizations not only to examine a given dataset, but also to draw generalizable conclusions about the underlying models or phenomena. Prior research has compared human visual inference to that of an optimal Bayesian agent, with deviations from rational analysis viewed as problematic. However, human reliance on non-normative heuristics may prove advantageous in certain circumstances. We investigate scenarios where human intuition might surpass idealized statistical rationality. In two experiments, we examine individuals' accuracy in characterizing the parameters of known data-generating models from bivariate visualizations. Our findings indicate that, although participants generally exhibited lower accuracy compared to statistical models, they frequently outperformed Bayesian agents, particularly when faced with extreme samples. Participants appeared to rely on their internal models to filter out noisy visualizations, thus improving their resilience against spurious data. However, participants displayed overconfidence and struggled with uncertainty estimation. They also exhibited higher variance than statistical machines. Our findings suggest that analyst gut reactions to visualizations may provide an advantage, even when departing from rationality. These results carry implications for designing visual analytics tools, offering new perspectives on how to integrate statistical models and analyst intuition for improved inference and decision-making. The data and materials for this paper are available at https://osf.io/qmfv6
... AI has limitations in other aspects of this quadrant, too, in understanding common-sense situations, dealing with uncertainty and unpredictability, and mimicking human problem-solving (Brynjolfsson & McAfee, 2012). Humans tend to main-tain an advantage in situations that require holistic and visionary thinking, particularly in strategic planning where ambiguity and uncertainty are prevalent (Sadler-Smith & Shefy, 2004). Leaders must understand the strengths and limitations of AI and human decision-making to leverage AI effectively in their business strategies (Borges et al., 2021). ...
... Human decision-makers often rely on intuition and qualitative assessment based on experience and personal judgment in complex real-world scenarios. These decisions are often hard to articulate and driven by a sense of what feels right (Sadler-Smith & Shefy, 2004). However, it is important to note that relying solely on intuition and personal judgment in decision-making can lead to cognitive biases and suboptimal outcomes (Akata et al., 2020). ...
As organizational leaders and employees navigate the new landscape of hybrid work, two additional technological innovations are quickly becoming prevalent: Human-AI Collaboration and new forms of presence in virtual environments recently conceptualized as Metaverse. Whereas both developments are still in early stages, the example of generative AI has shown how fast emerging technology can have important implications for organizational practices. But how do we study something that has not yet materialized? In this paper, we apply web-based horizon scanning and develop four scenarios, based on tasks in McGrath's group task circumplex, to speculate on the future of work. Beyond discussing the possible implications of the scenarios and providing exemplary research questions, we explore and discuss horizon scanning as a future-looking methodology for information systems research.
... Rational assumptions are often due to managers evaluating business environments as objective assets. It assumes successful strategies are the product of good planning (Sadler-Smith & Shefy, 2004). The rational decision-making process includes a series of steps, as Simon (1977) states below: ...
... This perspective is dominantly used in management based on traditional economics rational choice theory. The superiority of the rational paradigm in management is generally regarded as the objective asset of managers in the business environment (Sadler-Smith & Shefy, 2004;Turpin & Marais, 2004). Many researchers have heavily criticized this rational human assumption of rational choice theory (Simon, 1955;Schermerhorn, 2012;Thaler & Sunstein, 2017). ...
The personality traits of the managers, their perception styles, management approaches and the way they evaluate the events can affect their decision-making styles. However, it is known that managers generally prefer one of the intuitive or rational decision forms in the management process. This study aimed to examine managers' decision-making behaviors within the rationality and heuristics framework. The research is designed as a case study, one of the qualitative research designs, as it aims to examine the decision-making styles of the managers in family businesses and which rational or intuitive decision-making style they prefer. The research sample was determined according to the purposive sampling technique and includes 19 family business managers. Research data were collected from 19 family business managers operating in different fields with the help of a semi-structured interview form. The collected data were analyzed according to qualitative content analysis. According to the research findings, managers use all rational, limited rational or intuitive decision-making types in their decision processes. Participants stated that the conjuncture and their way of evaluating events determine the decision-making process. The research results show that perceiving and evaluating the conditions in the decision-making process affects the decision-making process. This result shows that decisions are made depending on the perception of events and personality traits. This situation is critical because it shows that decisions are made according to factual/rational processes and subjective and perceptual processes
... The analysis, which was published in The Academy of Management Executive, focused on examining and applying gut feelings in the decision-making process. The authors illustrated the importance of intuition in executive applications setting up emphasis on how it influences decision-making processes [10]. Sinclair and Ashkanasy executed a study in the field of Management Learning to explore the idea of intuition and how it works in decision-making [11]. ...
This chapter explores the challenges and opportunities for innovation in traditional social work settings, emphasizing the changing landscape, importance of embracing new approaches, and expanding roles beyond traditional boundaries. It discusses accepting intersectional identities, being self-aware, reflective, trauma-informed, culturally humble, and knowledgeable about factors impacting clients’ lives. Additionally, it highlights the significance of diversity in the field and the potential for social workers with different backgrounds to contribute to social activism. The abstract also mentions the Grand Challenges for Social Work initiatives, addressing pressing social issues through collaborative efforts. It touches upon innovative applications of social work, including collaboration with engineers, consulting with the entertainment industry, and providing support in emerging industries like marijuana farming and societal programming through media outlets, emphasizing the integration of intuition and spirituality with traditional logic for decision-making and problem-solving. In conclusion, the chapter advocates for a centralized and self-sufficient social work profession serving as the backbone of organizational connection, leveraging unique skills and traditions, embracing uncommon backgrounds, and building stronger networks for sustainability, social awareness, and justified incredulity enlightened by the power of love.
... However, recent research has highlighted the role of heuristics in promoting accurate decisions [1,7]. Intuitive decision-making can sometimes lead to better outcomes than rational, analytical reasoning [6,23], particularly in high-risk highuncertainty situations [11]. Non-statistically rational thinking could, thus, be useful when viewing a visualization with high uncertainty or 'extreme' data. ...
People often use visualizations not only to explore a dataset but also to draw generalizable conclusions about underlying models or phenomena. While previous research has viewed deviations from rational analysis as problematic, we hypothesize that human reliance on non-normative heuristics may be advantageous in certain situations. In this study, we investigate scenarios where human intuition might outperform idealized statistical rationality. Our experiment assesses participants' accuracy in characterizing the parameters of known data-generating models from bivariate visualizations. Our findings show that, while participants generally demonstrated lower accuracy than statistical models, they often outperformed Bayesian agents, particularly when dealing with extreme samples. These results suggest that, even when deviating from rationality, human gut reactions to visualizations can provide an advantage. Our findings offer insights into how analyst intuition and statistical models can be integrated to improve inference and decision-making, with important implications for the design of visual analytics tools.
... For instance, Sadler-Smith and Shefy (2004) found that leadership that fosters a supportive and ethical environment enhances managers' confidence in their intuitive decisions. This is consistent with the current study's finding that SLB mediates the effect of ethical attitudes toward AI on intuitive decision-making (Sadler-Smith & Shefy, 2004). ...
This study is grounded in decision-making theory, which explains how various cognitive and external factors shape leaders’ decision-making styles. Introducing new Artificial Intelligence (AI) technologies into schools has transformed leadership practices. By relying on their perspectives and understanding of ethics in AI, educational leaders incorporate it into their managerial tasks, including decision-making. The decision-making styles (DMS) of educational managers, representing the response pattern demonstrated by a manager in a decision-making situation, may be influenced by various factors, including attitudes toward the ethics of artificial intelligence (AT-EAI). However, the question arises of whether sustainable leadership behaviors (SLB) and diversity management skills (DMS) can mediate this relationship. Due to the gap in scholarly discussions, this study aimed to determine the mediating role of SLB and DMS in the relationship between AT-EAI and the decision-making styles of middle and high school managers. We used confirmatory factor analysis, structural equation modeling, and model fit indexes to address the study’s aims. Of 447 participants, 191 were female (42.8%) and participated in the current study. The results indicated that AT-EAI had a significant positive effect on Rational decision-making style (RDMS), Intuitive decision-making style (IDMS), and Dependent decision-making style (DDMS) (p < .001) and a significant negative effect on Avoidant decision-making style (ADMS) and Spontaneous decision-making style (SDMS) (p < .001). Furthermore, AT-EAI indirectly influenced RDMS, IDMS, and SDMS through SLB and DMS. These findings suggested that training educational leaders to improve their attitudes toward AI ethics while enhancing their sustainable leadership and diversity management skills can lead to more effective and ethical decision-making in schools.
... Schließlich haben gute Strategen üblicherweise eine starke Intuition. Natürlich kann Intuition eine Quelle von Verzerrungen (Kahneman, 2012;Kahneman et al., 1982) oder Weisheit (Hodgkinson et al., 2009;Sadler-Smith & Shefy, 2004;Salas et al., 2010) sein. Die guten Intuitionen basieren auf dem erworbenen Wissen über Strategie sowie auf jahrelanger Erfahrung, während die schlechten Intuitionen nur auf Bauchgefühl beruhen. ...
The book is bilingual: English and German
English: As a part of our strategic management class, students need to learn to think in abstract terms. For this, we developed an interesting and somewhat unconventional home assignment – all students received an academic text about which they had to reflect in the shape and form of a story. Be it a spy, detective, or Harry Potter like story or narrative, they had to learn to explain complex concepts in a way that any lay person understands them. This book is a collection of these stories.
Deutsch: Im Rahmen unseres Kurses über Strategisches Management müssen die Studierenden lernen, in abstrakten Begriffen zu denken. Dazu haben wir eine interessante und etwas unkonventionelle Hausaufgabe entwickelt: Alle Studierenden bekamen einen wissenschaftlichen Text, den sie in Form einer Geschichte verarbeiten sollten. Sei es eine Spionage-, Detektiv- oder Harry-Potter-ähnliche Erzählung, sie mussten lernen, komplexe Konzepte so zu erklären, dass jeder Laie sie verstehen kann. Das vorliegende Buch bietet eine Sammlung dieser Geschichten.
... Though a rational approach requires methodical, arduous information collection and analysis to develop alternative solutions, it has limited utility for decisions that involve higher complexity or innovation (Tiernan and Morley, 2013). In real-life situations, managers may be influenced by their emotions, mental ability and environmental constraints; and apply their judgment and intuition (Sadler-Smith and Shefy, 2004). ...
Purpose-This study aims to investigate the relationship between the adoption of human resource (HR) analytics and managerial decision-making (DM), with attitude toward artificial intelligence (AI) as a potential moderator. Design/methodology/approach-This study was conducted in three phases. In Phase I, a comprehensive scale to measure the "Adoption of HR analytics" was conceptualized and developed. In Phase II, the scale was validated and operationalized. Finally, in Phase III, a survey of 377 managers was conducted, and a conceptual model was validated using structural equation modeling. Findings-This study reveals that the adoption of HR analytics (HRA) and a positive attitude toward AI significantly influence DM. The findings suggest that the structural factors play the most important role in the adoption of HRA, followed by individual factors, value and system support. Practical implications-These findings hold valuable implications for managers seeking integration of HRA and AI within organizational systems and processes. HR practitioners can evaluate their organization's readiness for HRA, enabling them to build a future-proof workforce with the necessary skills. It can help managers make the adoption of AI-enabled HRA a reality. The study also helps to remove inhibitions and concerns of HR managers and employees related to AI. Originality/value-This paper addresses the methodological, practical knowledge and evidence gap in the area of adoption of HRA and DM. It sheds light on the "future of work" in HR, highlighting a potential shift toward human-AI collaboration.
... On the other hand, Herrmann (2020), believe that humans have superior abilities when dealing with uncertainty and equivocality through their intuition and experience. According to Sadler- Smith and Shefy (2004), intuition is the ability to generate direct knowledge or insights without the use of reason or logical inference. Although AI systems can facilitate analytical decision-making, they are not as adept at contextual understanding as humans are (Guszcza et al., 2017) yet, AI systems are less flexible in uncertain or unpredictable environments than humans are (Brynjolfsson & McAfee, 2011). ...
The rapidly expanding topic of Humanitarian Supply Chain (HSC) research has garnered significant attention due to the appalling circumstances encountered by people coping with extreme poverty, climate change, and other disasters. In order to optimize decision-making within HSC, this study proposes a paradigm shift that involves the use of Hybrid Intelligence in the creation of an integrated strategic decision-making approach. This paper establishes a groundbreaking conceptualization in HSC, applying it within the framework of Socio-Technical Systems Theory (STS). It does this by conceptually designing hybrid systems that prioritize access to human intelligence and skillfully identify intricate patterns, while simultaneously leveraging artificial intelligence systems to weigh complex factors.
... More precisely, we still know very little about how the design of visualizations for decision making affect the perceptions of the intended user and consequently the quality of decision making. IQ dimensions of visual representation have become increasingly important for contemporary organizations, since they can lead to several issues, such as biased decision making, overconfidence, inaccurate understanding of the underlying data, distrust, and overemphasis on certain information Sadler-Smith & Shefy, 2004). The key assumption in several studies is that simply improving the quality dimensions of information will result in improved decision making. ...
... These findings support hypothesis H3c about intuitive cognitive styles. Moreover, the research results align with past empirical studies (Agor, 1986;Allinson et al., 2000;Sadler-Smith and Shefy, 2004;Armstrong and Hird, 2009;De Visser and Faems, 2015). However, hypotheses H3a, H3b and H4 were not supported. ...
Purpose
This study aims to investigate the relationships between managers’ cognitive styles, dynamic managerial capabilities and firms’ perceived international performance. The study is based on cognitive-experiential self-theory, dynamic managerial capabilities and international entrepreneurship.
Design/methodology/approach
Data were collected from 283 managers of small medium enterprises (SMEs) in Türkiye, an emerging economy. The research was conducted using quantitative methods, and Smart partial least squares (PLS) 4 software was used for data analysis. The data were examined through structural equation modelling and mediation analyses.
Findings
Findings indicate that rational cognitive styles positively influence managerial human capital, managerial social capital, managerial cognition and perceived international performance. However, the effect of intuitive cognitive styles was confirmed only on managerial cognition. Additionally, it was found that managerial cognition positively affects perceived international performance, whereas managerial social capital has a negative impact. However, the effects of managerial human capital could not be confirmed. Moreover, a full mediation relationship of managerial cognition between intuitive cognitive styles and perceived international performance was identified.
Originality/value
This research carves out a unique niche by synergizing cognitive-experiential self-theory with dynamic managerial capabilities to investigate their conjoined effect on firms’ international performance, an area previously underexplored. Unveiling insights from burgeoning economies like Türkiye enriches the existing body of knowledge, offering substantial contributions to the field of international business.
... Second, our results indicate that innovation managers' judgments are more rational -i.e., that they make more accurate judgements -when they are exposed to a great deal of positive information about a new product. Third, we provide evidence that individual expertise contributes to more rational judgments [33], [34], [35], [40], [41], but only in the absence of stereotypical representations. ...
Storytelling about success is a compelling strategy for communicating a new product's features, both internally to gain the support of key decision makers and externally to gain support for market launch. Yet, new product success stories often lean more toward stereotypes than facts, casting doubt on their accuracy and representativeness. This study examines the accuracy of innovation managers' judgments about new product success rates when faced with stereotypical information. We specifically explore the influence of the representativeness heuristic, hypothesizing that it leads managers to rely on stereotypical information and potentially results in erroneous judgments. Through two experimental studies, we assess how the valence and amount of information impact judgment accuracy. Our findings indicate that both factors predominantly drive intuitive judgments, which can be less accurate than deliberation. Additionally, we discover that a manager's level of expertise moderates this relationship. Even expert innovation managers, when influenced by stories about potential new product success, tend to disregard factual data about past success rates. These findings offer critical insights into how reliance on stereotypical representations can skew innovation managers' judgments about new product success.
... No contexto da alta gestão das organizações, apesar de a IA fraca demonstrar eficácia nas decisões de natureza operacional e tática, pressupõe-se que, hoje, as decisões de cunho estratégico exigem mais do que a tecnologia pode extrair dos dados e, assim, necessitam de intervenção ou coparticipação humana para serem concretizadas 9 . Além do uso da intuição executiva, vale considerar que, na liderança organizacional, a essência do julgamento humano apoia-se em aprendizados sobre a cultura e a história organizacional, ambos balizados por empatia e reflexão ética -o que, na prática, reflete em decisões respaldadas em experiências e conhecimentos práticos dos executivos 10 . ...
Como a relação entre máquinas e homens pode mudar a governança corporativa e a maximização de valor organizacional
... Intuition-based decisions are driven by rapid, affectively charged judgments, that stem from holistic associations (Dane & Pratt, 2007) rather than from a thorough assessment of available information. Because of these qualities, intuition generally finds expression through hunches and gut feelings (Khatri & Ng, 2000;Sadler-Smith & Shefy, 2004) as well as through emotions (Sayegh et al., 2004;Seo & Barrett, 2007). Conversely, rationality assumes that a complex situation that demands a decision can be segmented into separate structured decision problems, each of which can be solved by collecting and analysing available information, evaluating alternative options, and estimating the best suitable solution to enact (Dean & Sharfman, 1993). ...
Effective decisions are key in professional contexts as they significantly determine firms' long-term health and survival. Consequently, holding a clear understanding of the components that define decision effectiveness may be highly beneficial for organizations. However, the multidimensional nature of the construct has led to the lack of theoretical consensus on the defining components of decision effectiveness. The present work sought to identify some of the factors that may intervene in determining decision effectiveness, specifically taking into account factors that are intrinsic in managers’ attitudes and skills. Three relevant factors were identified and discussed, encompassing analytic versus synthetic approach to decision-making, time-management and decision promptness, and active procrastination, and applicability of the investigated dimensions to employees' assessment organizational practices is proposed.
... However, only few evidence-based methods aim to sharpen managers' intuition and to turn it into a purposefully trained and purposefully applied decision aid. Among existing approaches are recognizing and turning the wicked environments in which we educate our intuition into kind ones (Hogarth, 2001), continuously testing and self-benchmarking intuitive judgements (Sadler-Smith and Shefy, 2004), mixing, in teams, intuitive with analytical members (Hodgkinson et al., 2009), and developing intuitive awareness as part of business school curricula (Sadler-Smith and Shefy, 2007). Yet, the repertoire of approaches is limited. ...
Despite intuition being a valuable tool for managerial decision-making, few efforts are made by managers and for managers to help acknowledging and developing their intuition. This chapter proposes simple rules heuristics as natural and appropriate means to encode, use, test, refine, store, and share knowledge that arose intuitively. One way to purposefully develop the intuitive executive is to observe and unpack how managerial intuition works in a natural environment and then to both catalyze and replicate the process. Therefore, based on our understanding of the natural process which turns intuition into a simple rule, we end this chapter by proposing two methods, one aimed at individuals and based on dialogue and one designed for teams’ lessons-learned meetings, in which managers and teams can purposefully capture intuitions that would not surface otherwise and also increase their intuitive awareness.
... However, only few evidence-based methods aim to sharpen managers' intuition and to turn it into a purposefully trained and purposefully applied decision aid. Among existing approaches are recognizing and turning the wicked environments in which we educate our intuition into kind ones (Hogarth, 2001), continuously testing and self-benchmarking intuitive judgements (Sadler-Smith and Shefy, 2004), mixing, in teams, intuitive with analytical members (Hodgkinson et al., 2009), and developing intuitive awareness as part of business school curricula (Sadler-Smith and Shefy, 2007). Yet, the repertoire of approaches is limited. ...
... While the link between experience and its influence on decision-making is well-established (Elbanna, Thanos and Jansen, 2020;Morelli, Casagrande and Forte, 2022) and does not require added discussion here, the same cannot be said for 'intuition' (Elbanna and Fadol, 2016). This is perhaps due to loose and weak descriptions/definitions of 'intuition' in literature where the concept is often conflated with other concepts such as 'instinct' or 'tacit knowledge' (Bonabeau, 2003;Sadler-Smith and Shefy, 2004;Miller and Ireland, 2005;Dane and Pratt, 2007;Stevenson and Hicks, 2016;Hodgkinson and Sadler-Smith, 2018;Wilding, 2022). ...
Strategizing Modes In Action (An Irish Case Study) Edward Dennehy SETU Edward.dennehy@setu.ie Purpose: This article aims to investigate the strategizing approach of an Irish SME owner and develop a conceptual framework for general analysis of strategizing modes using the paradigms of rational v intuitive bases for strategy formation, and the planned v incremental formats of strategic actions. Design/methodology/approach: A case study approach was used involving a semi-structured interview and background research. Findings: The research concluded that the SME owner depended largely on her intuition for strategizing. This approach was very successful when her personal experiences were relevant and unsuccessful when irrelevant. Research limitations/implications: The primary research relates to the strategizing mode of a single SME owner. The findings imply that contextual knowledge is important in the study of the analysis of intuition and its value to strategizing. Practical implications: The research reinforces the value of relevant experience in managerial decision-making which has clear HRM implications, and in particular, offers a cautionary warning to managers engaging in diversification. Social implications: The paper indirectly promotes the concept of self-awareness and the understanding of personal limitations. Such self-reflection may help managers become aware of personal biases and heuristics. Originality/value: The primary research findings offer a more nuanced understanding of the value of intuition to strategic decision-making. The strategizing modes conceptual framework offers a base and tool for further research.
... There has been increasing interest in the role of intuition in managerial decision making (Burke & Miller, 1999;Sadler-Smith & Shefy, 2004;Dane & Pratt, 2007) including studies with project managers. Leybourne and Sadler-Smith (2006, p 491) found that not only did project managers report using intuition (which they described as 'those affectively charged, non-conscious cognitively based judgments which we refer to as intuition, hunch or gut feel') but that it was positively linked with improvisation. ...
... Los beneficios de la intuición en los primeros momentos de la concepción de un producto son la aceleración y mejora en la toma de decisiones (Klein, 2003), resolver problemas poco estructurados de manera creativa (Dijksterhuis & Meurs, 2006), el potencial de obtener un producto de mayor calidad y una anticipación para la planificación de nuevos productos. Coloquialmente, la intuición también representa un sentimiento que puede ir en contra de lo razonable y lo establecido, como un instinto o impulso de realizar un cambio crítico que de no seguirlo resultará ser un error (Sadler-Smith & Shefy, 2004). Muchos diseñadores, artistas y creativos confían en su intuición para generar nuevas ideas y enfoques que pueden ser difíciles de descubrir a través de un proceso de pensamiento más estructurado (Finke et al., 1996). ...
Self-commissioning in design refers to the practice of setting goals and objectives for oneself rather than having a brief or brief from the company. In self-commission, the creator has more control over the creative process and can focus on his own visions. Creative intuition, as the ability to trust inspiration and ideas that arise spontaneously, is not dependent on traditional creative methods. The combination of both, self-commissioning and creative intuition, can allow greater freedom to explore original ideas and approaches. On the other hand, the “prosumer”, a combination of the words producer and consumer, and which refers to the practice of users becoming active producers of products, instead of simply consuming what companies offer them, is a creativity that fits appropriately into self-commissioning and own creation. In the creative context, this can mean that the creator is both the producer and consumer of his own work, using his creative intuition and self-commissioning to produce original and unique content that is also appreciated by others. These practices can help creators gain more control over their creative process, explore original and innovative ideas, and create content that is relevant and engaging to other users.
El autoencargo en diseño se refiere a la práctica de establecer objetivos y metas para uno mismo en lugar de tener un encargo o brief de empresa. En el autoencargo el creador tiene mayor control sobre el proceso creativo y puede enfocarse en sus propias visiones. La intuición creativa, como capacidad de confiar en la inspiración y las ideas que surgen de manera espontánea, no depende de métodos creativos tradicionales. La combinación de ambas prácticas, autoencargo e intuición creativa, puede permitir una mayor libertad para explorar ideas y enfoques originales. Por otra parte, el "prosumer", combinación de las palabras productor y consumidor, y que se refiere a la práctica de los usuarios de convertirse en productores activos de productos, en lugar de simplemente consumir lo que les ofrecen las empresas, es un creativo que encaja adecuadamente en el autoencargo y la creación propia. En el contexto creativo, esto puede significar que el creador es tanto el productor como el consumidor de su propio trabajo, utilizando su intuición creativa y autoencargo para producir contenido original y único que también es apreciado por otros. Estas prácticas pueden ayudar a los creadores a tener un mayor control sobre su proceso creativo, explorar ideas originales e innovadoras, y crear contenido que sea relevante y atractivo para otros usuarios.
Among senior critical care physicians, a reliance on autonomy and clinical intuition has long been the norm. While this approach allows for adaptability in managing complex and unpredictable situations, it also leads to unwarranted variations in care delivery and to potential harm. Despite resistance from some physicians, there is a growing trend towards the use of standardised healthcare documents, such as guidelines and algorithms, stored and displayed digitally.
Transitioning towards a formalised approach to creating these documents would necessitate that expert physicians define and discuss preferred practices in a manner akin to computer programming. This would reduce irrationality and contradiction, while enabling assessment of computability and logic faults. Adding techniques to capture the intuition of the experts holds promise, particularly in complex or evidence-limited scenarios.
Looking ahead, the integration of sophisticated algorithms into critical care may redefine the role of computers, positioning them not merely as tools but as valued members of the clinical team.
Purpose: The aim of this article is to identify the relationship between the use of intuition in decision-making and the intensity of an individual's high sensitivity. This study aims to fill the research gap regarding the integration of the constructs of intuition in decision-making and the issue of highly sensitive persons. Design/methodology/approach: In order to operationalise the constructs analysed in the theoretical part of the article, validated research tools developed in previous empirical studies conducted in this area were used. The intuition construct consisted of 14 items representing statements describing behavior typical of people who use intuition or rational analysis in the decision-making process. To measure an individual's level of sensitivity, the High Sensitivity Scale developed was used, which consists of 27 items (questions) relating to the characteristics of highly sensitive persons. Data collected from 338 respondents was analysed using a least-squares regression modelling approach. Findings: The results show that a higher intensity of the positive aspects of high sensitivity decreases the level of use of intuition in decision-making processes. An inverse relationship was identified for the negative aspects of high sensitivity, i.e. a higher intensity of these characteristics translates into a higher level of the use of intuition. It has also been proven that highly sensitives managers tend to use intuition more frequently in their decision-making process than rational analysis. These results contribute to a better understanding of the phenomenon of the use of intuition in decision-making processes by HSPs. Research limitations/implications: In terms of measuring both intuition and high sensitivity, the main problem was that the measurement was based on the respondent's self-assessment, which can lead to distortions due to personal bias or the desire to present oneself in a better light. Furthermore, the limitations of the research process are also associated with the sample size. A final limitation indicating directions for further research is the adoption of a quantitative approach. This involves a lack of control of external factors, and therefore the results may not be very accurate. Originality/value: The value of the work comes from its potential to provide new insights into how personality traits can influence intuitive decision-making, which may have practical applications in psychology and management. This article makes an important contribution to the understanding of intuitive mechanisms in context of highly sensitive persons.
Socially, economically, politically, and technologically, our world is transforming in complex ways that are beyond what we could have fathomed even five years ago. Now, more than ever, managerial decisions have far-reaching consequences in the way that organizations fail or succeed in bridging commerce and compassion, sustainability, and profitability, and move from vision to effective strategic implementation. Solving problems, making decisions, and picking the courses of action are the most critical aspects of being in charge because it is risky and very difficult. Bad decisions can damage a career, influence people's lives, and hurt an organization's performance. But where do bad decisions come from? In many cases, they can be traced back to the way the decisions were made. Maybe the right questions were not asked. Maybe the right alternatives were not explored or maybe the data collected was wrong. Sometimes, the fault of poor leadership decisions lies not in the decision-making process, but rather in the mind of the decision-maker.
Bu çalışmanın temel amacı, stratejik karar alma süreci (SKAS) özellikleri üzerindeki çevresel etkileri ortaya koymak ve stratejik karar alma süreci özelliklerinin stratejik kararın uygulama başarısı üzerindeki rolünü belirlemektir. Çalışmanın amacı doğrultusunda, stratejik karar alma sürecinin özellikleri, çevresel determinizm perspektifi ve stratejik kararların uygulama başarısı ile ilgili literatür incelenmiştir. Bu çalışma, SKAS özellikleri üzerindeki çevresel etkilerin ve SKAS özelliklerinin stratejik kararın uygulama başarısındaki rolünün kuramsal temellerini ortaya koymakta ve geliştirilen araştırma önermeleri ışığında kavramsal bir model sunmaktadır. Başka bir deyişle, bu nitel araştırmada metodoloji, literatürün sentezini içermekte ve çevresel faktörlerin SKAS üzerindeki doğrudan etkilerini ve SKAS özelliklerinin stratejik kararların uygulama başarısı üzerindeki rolünü araştıran bir çerçeve önermektedir. Bu çalışma aynı zamanda kuramsallaştırma, metodoloji ve yönetimsel çıkarımlarla ilgili olarak gelecek araştırmalara fayda sağlaması beklenen bir dizi alana değinmektedir.
Cognitive Task Analysis (CTA) is a powerful methodological approach that can enhance the rigorous elicitation and documentation of complex cognitive processes within interview-based qualitative research. We provide insights into this set of semi-structured interviewing techniques that we contend have much to offer management researchers who wish to understand the complexities of expert cognition within specific work-related tasks. Distinct from traditional semi-structured interview methods, CTA is designed to identify the knowledge requirements underpinning expertise in complex work domains. First, we present CTA as a robust approach to eliciting complex cognition and note why, when, and where management scholars might best use its techniques. Second, we provide two examples of how CTA methods have been used to research management; specifically, using the Critical Decision Method to explore management in high-stakes environments, and Applied Cognitive Task Analysis to explore global leadership. In ending, we propose greater use of this pragmatic approach in management research and highlight potential avenues for future research that will advance understanding of complex cognition at work.
This study investigates the intricate relationship between sensory perceptions and financial choices through a neuroscientific perspective, addressing two key research questions: (1) How are sensory perceptions and financial choices related? (2) How is neuro sensory behavior important in investment decision-making? By integrating insights from neuroscience and behavioral finance, we aim to uncover the mechanisms by which sensory inputs influence economic behaviors and decision-making processes. Our conceptual, literature-based exploration reveals those sensory perceptions—encompassing visual, auditory, olfactory, tactile, and gustatory stimuli—play a critical role in shaping financial decisions. These sensory inputs are processed by neural systems, affecting cognitive functions and emotional responses, which in turn influence risk perception, time preference, and overall financial choices. This study highlights that financial decisions are not solely based on rational calculations but are deeply intertwined with sensory experiences and emotional states.
Recommendation systems—that is, a class of machine learning algorithm tools that filter vendors' offerings based on customer data and automatically recommend or generate personalized predictions—are empowered by artificial intelligence (AI) technology and embedded with AI characteristics; but the potential consequences for customer well‐being are greatly overlooked. Hence, this research investigates the impact of AI characteristics on technology well‐being (self‐efficacy, technology satisfaction, emotional dissonance, and autonomy) through two mechanisms: intuitiveness versus intrusiveness. A literature review which conceptualizes AI characteristics and technology well‐being in the recommendation system context is followed by a US‐based survey approach which shows that higher levels of information optimization, predictability, human likeness, and customizability lead to higher levels of intuitiveness, whereas only information optimization and human likeness leads to increased intrusiveness. However, both intuitiveness and intrusiveness are found to promote technology well‐being in the context of a recommendation system, especially for those more vulnerable individuals who respond positively to intrusiveness. Hence, the conclusion is “the recommendations are not always annoying,” whereby the relationships between AI characteristics and technology well‐being are significantly influenced by perceived intrusiveness. These findings help business practitioners to identify how consumers perceive and engage different AI characteristics, and therefore could better take care of technology well‐being while boosting AI development.
Purpose
Decision-makers often struggle to combine advice with their own intuition. This study examines how advice-giver traits and decision-makers’ intuition influence advice uptake. We present a novel typology based on decision-makers’ trust in advice-givers and their perceived expertise.
Design/methodology/approach
This qualitative study uses a sample of publicly available interview data with 51 elite performers. Using inductive and content analysis, we explore the mediation between decision-makers’ intuitive competence (ability to effectively deploy intuition in interface with advice) and their autonomy (self-endorsement from past performance).
Findings
We identify four sources of advice: mentor advice, specialist advice, confidant advice and commentator advice. Drawing on instances of different sources of advice along varying degrees of trust and expertise, we propose a framework for interaction between intuitional competence and advice characteristics.
Originality/value
We offer a novel way of contextualising nuanced forms of advice and provide a structured typology of sources, characterised by trust and expertise. This typology and our findings help reconcile contradictions in decision-making research. Finally, we offer practical guidance for the uptake of advice.
Introduction: Ethical decision-making is crucial for measuring human behaviour, impacting relationships, personal choices, and professional conduct. In the process of dual-process theories, ethical decision-making is based on two distinct procedures (Warner et al., 2022). However, the impact of various psychological, social, situational, and physiological factors on dual-process ethical decision-making has been widely studied, specifically in Canada (Toti et al., 2021). Methods: The data was collected from 1 384 respondents within the set criteria. The correlational and regression analysis tests were applied using Smart PLS software. This study is a primary quantitative study with the deductive approach. The validity and reliability of the data were measured using Cronbach Alpha, and the Average Variance was Extracted. Findings: The results show that all the variables have the strongest correlation, with values of 0.912, 0.868, 0.844, and 0.898, respectively. It has been indicated that emotional regulation also plays a significant mediating role in impacting the EDM, with a value of 0.838. Conclusion: It has been concluded that the hypothesis for the study is accepted as all the independent variables, namely psychological, situational, social and physiological factors, have a strong positive significant relationship with the dual process of ethical decision-making and have a significant impact.
Recent research emphasizes the complexity of providing useful explanations of computer-generated output. In developing an explanation-generating tool, the computer scientist should take a user-centered perspective, while taking into account the user’s susceptibility to certain biases. The purpose of this paper is to expand the research results on explainability from the social sciences, and to indicate how these results are relevant to the field of XAI. This is done through the presentation of two surveys to university students. The analysis of the results leads to some interesting hypotheses, for example that the presented order of historical facts might be more influential on the interpretation or appreciation of an event than the actual temporal order of these facts. The computer scientist should, therefore, pay particular emphasis to the format of the produced output of any explainable artificial intelligence system. The main message of the paper is that results from the social sciences must be regarded as a crucial foundation of any explainable artificial intelligence system.
Purpose
This article aims to tackle the organization's problems with a new paradigm of organizational consciousness by developing a framework.
Design/methodology/approach
The Phenomenological and Framework Synthesis approach is used to develop the conceptual framework for organizational consciousness.
Findings
The research article highlights organizational consciousness's implications for long-term sustainable success. It emphasizes the positive impact of conscious organizations on stakeholder well-being and the resolution of environmental and social problems.
Originality/value
The organizational consciousness framework encompasses the collective awareness, values, and purpose that guide an organization's actions and decisions. The framework emphasizes aligning organizational values, needs, and goals with all stakeholders' social, environmental, and well-being. It highlights the interconnectedness of stakeholders and encourages a system-thinking perspective. Furthermore, it acknowledges the role of individual and group consciousness in driving organizational transformation. It discusses the pathway to organizational success through conscious practices, emphasizing value creation beyond monetary gain. It explores the role of conscious leadership, innovative and continuous learning, and adaptation in fostering conscious organizations.
This study delves into the strategic decision-making process (SDMP) within the context of new product development (NPD), exploring the nuanced interplay between intuition and rationality as key drivers in product innovation. It investigates how top and middle managers in multinational corporations' subsidiaries in the Netherlands navigate the tension between intuitive and rational decision-making to enhance the effectiveness of NPD initiatives. Through 15 semi-structured interviews, the research identifies six key influencing factors: personality characteristics, cognitive styles, experience, environmental forces, organizational resource constraints, and the strategic importance of decisions. It reveals two distinct integration patterns, intuition-rationality (IR) and rationality-intuition (RI), and three latent dimensions influencing decision-making: feeling affirmation, experience-based judgment, and holistic information processing. The findings underscore the critical role of integrating intuition and rationality in improving decision-making quality within NPD, particularly in terms of time efficiency, creativity, and persuasion power. This paper significantly contributes to the SDMP literature by demonstrating the complex conditions under which intuition and rationality can be seamlessly integrated to achieve superior outcomes in product development, promoting a holistic approach to decision-making that is pivotal for innovation and strategic competitiveness in new product initiatives.
Recent conceptualizations of auditors’ professional skepticism suggest the interplay between analytical and intuitive information processing. We conduct an in-depth empirical investigation to explore this relationship, drawing on 49 interviews with auditors from the Big Four audit firms in the UK. It reveals that auditors’ skepticism often emerges intuitively in response to interpersonal contexts, manifesting as feelings of discomfort. These intuitive responses guide subsequent, more deliberative processes of collecting and analyzing audit evidence. The research demonstrates that such intuitive feelings are integral to auditors’ recognition of potential issues, thereby enhancing their cognitive evaluations. Additionally, the study explores how auditors’ skeptical judgments are continuously shaped by their social environments and the intuitions of other members of their audit teams. Ultimately, the findings affirm that the fusion of intuition and reasoning plays a crucial role in auditors’ practice of PS, with past practice experiences and social interactions enriching their intuitive assessments and contributing to developing their professional expertise.
Music has profoundly shaped the human experience across cultures and generations, yet its impact on our minds and bodies remains elusive. This study examined how the perception of musical chord elicits bodily sensations and emotions through the brain’s predictive processing. By deploying body-mapping tests and emotional evaluations on 527 participants exposed to chord progressions, we unveiled the intricate interplay between musical uncertainty, prediction error in eliciting specific bodily sensations and emotions. Our results demonstrated that certain chord progressions elicit cardiac and abdominal sensations, linked to interoception, and associated with aesthetic appreciation and positive valence. These findings highlight the crucial role of musical uncertainty and prediction error in emotional response and sound embodiment. This study offers insight into the potential connection between music-induced interoception and mental well-being, underscoring the musical effects on our minds and bodies.
As society's reliance on software systems escalates over time, so too does the cost of failure of these systems. Meanwhile, the complexity of software systems, as well as of their designs, is also ever‐increasing, influenced by the proliferation of new tools and technologies to address intended societal needs. The traditional response to this complexity in software engineering and software architecture has been to apply rationalistic approaches to software design through methods and tools for capturing design rationale and evaluating various design options against a set of criteria. However, research from other fields demonstrates that intuition may also hold benefits for making complex design decisions. All humans, including software designers, use intuition and rationality in varying combinations. The aim of this article is to provide a comprehensive overview of what is known and unknown from existing research regarding the use and performance consequences of using intuition and rationality in software design decision‐making. To this end, a systematic literature review has been conducted, with an initial sample of 3909 unique publications and a final sample of 26 primary studies. We present an overview of existing research, based on the literature concerning intuition and rationality use in software design decision‐making and propose a research agenda with 14 questions that should encourage researchers to fill identified research gaps. This research agenda emphasizes what should be investigated to be able to develop support for the application of the two cognitive processes in software design decision‐making.
The purpose of this study is to explore the strategies deployed by managers in organisations to legitimate their intuitions. Managerial practice is a continual process of emergence and integration of problems and projects, and by which managers navigate a complex world. To do so, they rely partly on their intuitions, whose effectiveness has largely been demonstrated in the literature. However, the rational model is still considered the optimal cognition and decision-making process in organisations. The persistence of the myth of rationality compels managers to deploy strategies to legitimate their intuitions. But these strategies are poorly understood. The aim of this study therefore was to describe them. For this purpose, we collected 191 accounts of episodes where managers legitimated their intuitions. Our analysis of these accounts revealed seven intuition legitimation strategies. Some of these strategies had not previously been identified in the institutional literature (personalisation, transparency, exploration and compound strategy). For others which had already been partly described (rationalisation, manipulation and relational strategy), we show that managers deploy new modes. These results contribute to the knowledge of legitimation strategies from a conceptual point of view. They also shed some light on the mistrust of intuition that still prevails in organisations, despite its importance.
The surge in data-related investments has drawn the attention of both managers and academia to the question of whether and how this (re)shapes decision making routines. Drawing on the information processing theory of the organization and the agency theory, this paper addresses how putting a strategic emphasis on business analytics supports an analytical decision making culture that makes enhanced use of data in each phase of the decision making process, along with a potential change in authorities resulting from shifts in information asymmetry. Based on a survey of 305 medium-sized and large companies, we propose a multiple-mediator model. We provide support for our hypothesis that top management support for business analytics and perceived data quality are good predictors of an analytical culture. Furthermore, we argue that the analytical culture increases the centralization of data use, but interestingly, we found that this centralization is not associated with data-driven decision making. Our paper positions a long-running debate about information technology-related centralization of authorities in the new context of business analytics.
This book was the first handbook where the world's foremost 'experts on expertise' reviewed our scientific knowledge on expertise and expert performance and how experts may differ from non-experts in terms of their development, training, reasoning, knowledge, social support, and innate talent. Methods are described for the study of experts' knowledge and their performance of representative tasks from their domain of expertise. The development of expertise is also studied by retrospective interviews and the daily lives of experts are studied with diaries. In 15 major domains of expertise, the leading researchers summarize our knowledge on the structure and acquisition of expert skill and knowledge and discuss future prospects. General issues that cut across most domains are reviewed in chapters on various aspects of expertise such as general and practical intelligence, differences in brain activity, self-regulated learning, deliberate practice, aging, knowledge management, and creativity.
Decision-making in organizations The area of organizational decision-making is part of the broader field of organization studies and organization theory. It has therefore followed a similar pattern of evolution, drawing on a variety of paradigms and perspectives and being characterized by a multiplicity of theories, models and methodologies. This chapter charts its development as a subject of study. The chapter attempts to show how competing views and alternative theoretical frameworks of the way in which decisions are made have shaped both the methods of enquiry and subsequent explanations. The central concepts of rationality and power in decision-making are discussed. Further, the understanding of decision-making as an organizational process is explored in detail, as is the relatively neglected area of implementation. Decision-making overlaps other areas, notably strategic management, so the ways in which strategic decisions and strategies may be related are addressed. Finally, the chapter recognizes that most work on decision-making ...
In this paper we present a concept of dual human information processing as an aid to understanding the decision styles and decision strategies of managers. Several threads of thought are woven together: neurological studies of "split-brain" persons, Jung's typology of personality, and philosophical explanations of human duality. The resulting framework differentiates a range of left- to right-hemisphere-dominant decision styles and integrates four decision strategies expressed as approaches to the person and the environment.