Intuition versus Analysis? Testing Differential Models of Cognitive Style on Entrepreneurial Self–Efficacy and the New Venture Creation Process

Abstract

This research revealed the significant role of two distinct cognitive styles as a determinant of perceived entrepreneurial self-efficacy regarding the different stages of the new venture process. The study found that individuals' cognitive preference for analysis or intuition influences their perception and assessment of their entrepreneurial self-efficacy in their intentions to create a new venture. Individuals with the intuitive cognitive style were more confident in their ability to identify and recognize opportunities, without much confidence in their capacity of assessment, evaluation, planning, and marshalling of resources. Conversely, individuals with the analytic cognitive style were more confident in their abilities to assess, evaluate, plan, and marshal resources, but felt less confident in their abilities to search for and recognize new opportunities.

Unpacking Intuition: A Process and Outcome Framework

“…business management, education, medicine, law, etc.). For example, in the field of business and management researchers have proposed 'entrepreneurial intuition' (Sadler- Smith, Hodgkinson, & Sinclair, 2008) which is composite to the extent that it draws on: (1) creative intuitions for the generation of new ideas (Kickul, et al, 2009); (2) problem-solving intuitions for the judgment of the viability of a business venturing proposition (Blume & Covin, 2010;Crossan, et al, 1999); (3) moral intuition in deciding whether or not to invest in a deal which may have an ethical component (Buchholz & Rosenthal, 2005); (4) social intuition in deciding who and who not to transact with (Shane & Venkataraman, 2000). A corollary of this argument is that further secondary types may manifest in other applied areas such as healthcare, medicine, education, and law.…”

“…Recent empirical evidence shows that an intuitive cognitive style is positively associated with the creative aspects of entrepreneurship (Kickul, Gundry, Barbosa & Whitcanack, 2009). …”

Exploring holistic intuitive idea screening in the light of formal criteria

“…This is explained by the large amount of uncertainty and broad scope that entrepreneurs have to deal with (Bird, 1988). More recent research has determined that it is essentially during the earlier stages of the new venture process that intuition is favorable (Kickul et al, 2009). This is also the stage that is most similar to idea screening, i.e.…”

When moving information online diminishes change: advisory services to SMEs

“…Those firms who both planned and gained Investors in People (IiP), a BL badged management practice, gained greater benefits, although in part this concerned the attitude of the management to planning (Fraser 2003, Kickul et al 2009). Consequently, we might surmise that business planning would be associated with advice.…”