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Academy of Management Review

2007, Vol. 32, No. 1, 3354.

EXPLORING INTUITION AND ITS ROLE IN


MANAGERIAL DECISION MAKING
ERIK DANE
MICHAEL G. PRATT
University of Illinois at Urbana-Champaign

We review and reconceptualize intuition, defining intuitions as affectively charged


judgments that arise through rapid, nonconscious, and holistic associations. In doing
so, we delineate intuition from other decision-making approaches (e.g., insight, ra-
tional). We also develop a model and propositions that incorporate the role of domain
knowledge, implicit and explicit learning, and task characteristics on intuition effec-
tiveness. We close by suggesting directions for future research on intuition and its
applications to managerial decision making.

The human brain can be a magnificent synthe- shows how managers use intuitions for strategic
sizer of disparate pieces of nebulous information, decisions, such as whether to invest capital in a
and often formal techniques and procedures
thwart and inhibit this mysterious mechanism project or whether to market controversial pre-
from operating efficiently (Raiffa, 1968: 272). scription drugs. Hayashi (2001) frames several
high-profile executive-level decisions, including
A classic trade-off noted by decision theorists the development of the Dodge Viper and the
is that decision accuracy is often inversely re- prime-time launch of Who Wants to Be a Million-
lated to decision speed. Consequently, there has aire, as intuitive or gut decisions. Research
been pressure to understand how to make high- further suggests that the need for intuition may
quality decisions relatively quickly (see Eisen- be especially acute in organizations embedded
hardt, 1989; Hitt, Keats, & DeMarie, 1998; Perlow, in turbulent environments (Khatri & Ng, 2000).
Okhuysen, & Repenning, 2002). Toward this end, The effective use of intuition has even been
in numerous articles in the popular business seen as critical in differentiating successful top
press and in a steadily growing body of more executives and board members from lower-level
scholarly literature, authors have turned to the managers and dysfunctional boards (Agor, 1986;
notion of intuition as a means of managing Barnard, 1938; Harper, 1989). Ralph Larsen,
this trade-off (e.g., Burke & Miller, 1999; Hayashi, former chair and CEO of Johnson & Johnson,
2001; Khatri & Ng, 2000). As the epigraph sug- suggested:
gests, intuition draws on our inborn ability to
synthesize information quickly and effective- Very often, people will do a brilliant job through
lyan ability that may be hindered by more the middle management levels, where its very
formalized procedures. heavily quantitative in terms of the decision-
making. But then they reach senior management,
Within organizations, intuition has been pos- where the problems get more complex and am-
ited to help guide a wide range of critical deci- biguous, and we discover that their judgment or
sions. Research suggests that intuition may be intuition is not what it should be. And when that
integral to successfully completing tasks that happens, its a problem; its a big problem (Ha-
involve high complexity and short time horizons, yashi, 2001: 61).
such as corporate planning, stock analysis, and
performance appraisal (Hayashi, 2001; Isenberg, We believe that there have been two major
1984; Shirley & Langan-Fox, 1996). Agor (1986) barriers to a productive discourse on the topic of
intuition within the management literature. The
first concerns the considerable confusion sur-
We thank Lorna Doucet, Patrick Laughlin, Greg Oldham, rounding what intuition is. Although intuition
Kevin Rockmann, and the participants of the University of has a long history in the organizational sciences
Illinois Organizational Behavior Proseminar Series for their
helpful comments on earlier drafts of this manuscript. We (Barnard, 1938; Behling & Eckel, 1991; Isaack,
also extend our thanks to Janet Fitch for assisting us with 1978; Peters, Hammond, & Summers, 1974; Pri-
our copy editing. etula & Simon, 1989; Simon, 1987), in the litera-
33
34 Academy of Management Review January

ture in this area scholars have failed to agree on topadhyay, & Boyle, 2002; Woolhouse & Bayne,
what intuition is and what it does. This concep- 2000).
tual confusion comes, in part, from the various Drawing on recent advances in psychology
perspectives used to understand intuition. For and the decision sciences, we suggest that, un-
example, among Western philosophers, intu- der certain conditions, intuition may indeed fa-
ition was often perceived as the most pure and cilitate rapid and effective decision making in
immediate way of knowing (Osbeck, 2001; Wild, organizations. Before such gains can be real-
1938). It represented access to divine or inborn ized, however, we must first understand the
knowledge. In the East, many Buddhists viewed boundary conditions that surround the concept.
intuition as a means of obtaining penetrating We begin with an exploration of what intuition
knowledge and as a gateway to a wider and is and how it is different from other related con-
richer world (Guenther, 1958: 26). cepts, such as insight and instinct. We then con-
While some maintain that intuition is a mys- sider the factors that determine when the use of
tical avenue to knowledge (e.g., Ferguson, 1999; intuition in decision making is most effective.
Franquemont, 1999; Vaughan, 1979), researchers Toward this end, we synthesize findings across
in the areas of management and psychology a range of disciplines and formulate a set of
have explained intuition through a wide range propositions surrounding the effectiveness of in-
of phenomena, including heuristics (Bazerman, tuitive decision making.
1986; Denes-Raj & Epstein, 1994; Tversky & Kah-
neman, 1983), expertise (Blattberg & Hoch, 1990;
Prietula & Simon, 1989), and nonconscious infor- WHAT INTUITION IS: BRINGING TOGETHER
mation processing (Epstein, 1990, 1994, 2002; INTUITIVE PROCESSES AND OUTCOMES
Kahneman, 2003; Lieberman, 2000). Thus, one
Having both academic and nonacademic sig-
purpose of this paper is to seek out sources of
nificance, intuition, perhaps not surprisingly,
conceptual agreement or overlap across differ-
has a wide range of terms associated with it,
ent disciplines and, thus, provide greater clarity
including gut feelings (Hayashi, 2001), hunches
about the concept of intuition.
(Rowan, 1989), and mystical insights (Vaughan,
A second barrier hindering this line of inquiry
1979; Wild, 1938). Table 1 provides a sample of
is that scholars often fail to distinguish between
definitions of intuition culled from work in psy-
when intuitions are used and when they are
chology, philosophy, and management.
used effectively. To illustrate, evidence sug- One confusing aspect of past research is the
gests that individuals are likely to rely on intu- tendency to call both intuitive processes and
itive thought processes when they face extreme their associated products, or outcomes, intu-
time pressures (De Dreu, 2003; Edland & Sven- ition. For example, Jung (1933), Westcott and
son, 1993; Kaplan, Wanshula, & Zanna, 1993; Ranzoni (1963), and Raidl and Lubart (2000-2001)
Kruglanski & Freund, 1983; Maule, Hockey, & refer to intuition largely as a processa way of
Bdzola, 2000; Suri & Monroe, 2003). Therefore, perceiving or sorting data. Rorty (1967), in con-
intuition may play a significant role in the de- trast, sees intuition primarily as an outcomeas
cisions of firefighters (Klein, 1998), military com- what one apprehends or recognizes. Others
manders (Kaempf, Klein, Thordsen, & Wolf, combine both process and outcome without dif-
1996), emergency room surgeons (Abernathy & ferentiating between them. We believe that in-
Hamm, 1995), and corporate executives operat- tuition is marked by a unique process and out-
ing under severe time constraints (Agor, 1986; come; however, we also believe it is important to
Burke & Miller, 1999; Hayashi, 2001). The mere disentangle the two. Thus, we begin by address-
use of intuition, however, is not a panacea for ing intuition as a process and positioning this
the speed-accuracy trade-off, since its use may process vis-a-vis the larger dual processing
simply facilitate speed at the expense of accu- perspective that is currently favored among de-
racy. Therefore, we need to better understand cision-making theorists, especially in psychol-
those conditions that foster the effective use of ogy. We then build from this perspective to iden-
intuition to complement existing work on when tify process and outcome characteristics that
intuition is simply most likely to be used (e.g., historically have been central to many defini-
Ruder & Bless, 2003; Sinclair, Ashkanasy, Chat- tions of intuition.
2007 Dane and Pratt 35

TABLE 1
Definitions of Intuition

Source Definition of Intuition

Jung (1933: 567568) That psychological function transmitting perceptions in an unconscious way
Wild (1938: 226) An immediate awareness by the subject, of some particular entity, without such aid
from the senses or from reason as would account for that awareness
Bruner (1962: 102) The act of grasping the meaning, significance, or structure of a problem without
explicit reliance on the analytic apparatus of ones craft
Westcott & Ranzoni (1963: 595) The process of reaching a conclusion on the basis of little information, normally
reached on the basis of significantly more information
Rorty (1967: 204) Immediate apprehension
Bowers, Regehr, Balthazard, & A preliminary perception of coherence (pattern, meaning, structure) that is at first not
Parker (1990: 74) consciously represented but that nevertheless guides thought and inquiry toward a
hunch or hypothesis about the nature of the coherence in question
Shirley & Langan-Fox (1996: 564) A feeling of knowing with certitude on the basis of inadequate information and
without conscious awareness of rational thinking
Simon (1996: 89) Acts of recognition
Shapiro & Spence (1997: 64) A nonconscious, holistic processing mode in which judgments are made with no
awareness of the rules of knowledge used for inference and which can feel right,
despite ones inability to articulate the reason
Burke & Miller (1999: 92) A cognitive conclusion based on a decision makers previous experiences and
emotional inputs
Policastro (1999: 89) A tacit form of knowledge that orients decision making in a promising direction
Lieberman (2000: 111) The subjective experience of a mostly nonconscious processfast, alogical, and
inaccessible to consciousnessthat, depending on exposure to the domain or
problem space, is capable of accurately extracting probabilistic contingencies
Raidl & Lubart (2000-2001: 219) A perceptual process, constructed through a mainly subconscious act of linking
disparate elements of information
Hogarth (2001: 14) Thoughts that are reached with little apparent effort, and typically without conscious
awareness; they involve little or no conscious deliberation
Myers (2002: 128129) The capacity for direct, immediate knowledge prior to rational analysis
Kahneman (2003: 697) Thoughts and preferences that come to mind quickly and without much reflection
Epstein (personal The working of the experiential system
communication, 2004)

Historical Context: Two Information Processing because the processes are unconscious, or be-
Systems cause they are so complex and so rapid, often
approaching the instantaneous, that they could
Intuition has long been viewed as involving a not be analyzed by the person within whose brain
form of information processing that differs from they take place (1938: 302).
rational, or analytical, processes. Distinctions
between rational and nonrational human More recently, psychologists have adopted a
thought can be traced as far back as Aristotle dual processing approach, arguing for two dis-
(Sloman, 1996). In management research, Bar- tinct types of information processing systems in
nard similarly distinguished between logical human beings (e.g., Epstein, 2002; Gollwitzer &
and nonlogical modes of thinking, attributing Bayer, 1999; Sloman, 1996). One information pro-
intuition to the latter: cessing system, which from an evolutionary per-
spective is believed by some to be the older of
By logical processes I mean conscious thinking the two systems (Epstein, 1994; Reber, 1992), in-
which could be expressed in words, or other sym-
bols, that is, reasoning. By non-logical pro- volves the automatic and relatively effortless
cesses I mean those not capable of being ex- processing and learning of information (Stano-
pressed in words or as reasoning. . . . This may be vich & West, 2000). This system, which permits
36 Academy of Management Review January

individuals to learn from experience and reach mation is accessed and used. We view learning
perceptions of knowing without conscious atten- as an input to intuition effectiveness, but do not
tion (Hogarth, 2001), has been referred to as ex- see intuition as a learning process per se. Sec-
periential (Epstein, 1990, 1994, 2002; Epstein, Pa- ond, our focus on both processes and outcomes
cini, Denes-Raj, & Heier, 1996; Pacini & Epstein, of intuition differentiates our work from tradi-
1999), automatic (Bargh, 1996; Bargh & Char- tional research on nonconscious systems, such
trand, 1999), tacit (Hogarth, 2001), natural (Tver- as that on the experiental system, which has
sky & Kahneman, 1983), associative (Sloman, focused nearly exclusively on processes only.
1996), and system 1 (Kahneman, 2003; Stanovich Specifically, we conceptualize intuition both by
& West, 2000). its process (which we refer to as intuiting), as
Bargh and Chartrand (1999) argue that a large well as its outcome (which we term intuitive
portion of everyday life is determined by this judgments).
first information processing system. Insofar as In constructing a definition of the construct,
such processes are rapid, effortless, and often we build on and bridge work in psychology,
quite effective, nonconscious processes serve as philosophy, and management; our focus is on
mental butlers that conveniently manage our those aspects of intuition that are common and
tendencies and preferences (Bargh & Chartrand, central to all three. Specifically, our review of
1999). As we explain below, intuition is often the various literature on intuition has tended to
associated with this system (e.g., Epstein, 2002, converge on four characteristics that make up
Kahneman, 2003; Sloman, 1996). the core of the construct: intuition is a (1) non-
The second system enables individuals to conscious process (2) involving holistic associa-
learn information deliberately, to develop ideas, tions (3) that are produced rapidly, which (4)
and to engage in analyses in an attentive man- result in affectively charged judgments. We ex-
ner. This system has been referred to by various plore these characteristics in detail below.
names, including rational (Epstein, 2002; Epstein
et al., 1996; Pacini & Epstein, 1999), intentional
Intuiting Is Nonconscious
(Bargh & Chartrand, 1999), deliberate (Hogarth,
2001), extensional (Tversky & Kahneman, 1983), One of the defining characteristics of intuitive
rule based (Sloman, 1996), and system 2 (Kahne- processing is that it is nonconscious1it occurs
man, 2003; Stanovich & West, 2000). Rational de- outside of conscious thought. Jung, for example,
cision-making models, which have garnered the defined intuition as that psychological function
lions share of research on managerial decision which transmits perceptions in an unconscious
making, utilize this system of information pro- way (1933: 567568). Simple perceptions, how-
cessing. ever, are not the only type of information that is
Drawing on the conceptual foundation pro- transmitted through this means. The noncon-
vided by dual processing theories, we now turn scious processing of information can occur at
to the concept of intuition. Like other authors, we various levels of sophistication (Epstein, 2002;
view the process of intuition as relating to the Pacini & Epstein, 1999), and intuiting can involve
domain of the nonconscious information pro- the processing of more complex information
cessing system (e.g., Epstein 1990, 1994, 2002; than perceptions. On this point, Epstein and Pa-
Kahneman, 2003). However, in making this case, cini make the following observation about the
we also stress that not all nonconscious opera- nonconscious, experiential system:
tions are fundamental components of intuition At its lower reaches, it [the experiential system] is
itself. We have two primary reasons for differ- a relatively crude, albeit efficient, system for au-
entiating intuition from any given nonconscious tomatically, rapidly, and effortlessly processing
system depicted in dual processing theory. First,
the nonconscious systems in dual processing
theories typically involve a larger group of phe- 1
This characteristic of intuition has been called uncon-
nomena than are central to intuition. For exam- scious, subconscious, preconscious, and noncon-
scious (Epstein, 1994; Hogarth, 2001; Jung, 1933; Reber, 1992;
ple, research on the nonconscious system has
Simon, 1987). However, each of these terms has slightly dif-
often focused on learning processes. However, ferent meanings (see Kihlstrom, 1987, for a review). For the
as we will argue, intuitive processes pertain sake of parsimony, we refer to what each of these terms has
less to learning and more to how learned infor- in common: they are nonconscious.
2007 Dane and Pratt 37

information while placing minimal demands on tively simple cognitive structures, such as heu-
cognitive resources. At higher reaches . . . the ex- ristics, in the formation of intuitive judgments
periential system can be a source of intuitive
wisdom and creativity (1999: 463). (Bazerman, 1986; Bodenhausen, 1990; Kahneman,
Slovic, & Tversky, 1982; Kahneman & Tversky,
In further clarifying the connection between 2000; Tversky & Kahneman, 1983). As we will
nonconscious processing and intuition, we re- argue below, this line of research has often con-
emphasize the distinction between intuitive pro- cluded that intuitive decision making is inferior
cesses and outcomes. While the outcomes of to rational decision-making models.
intuiting, intuitive judgments, are clearly acces- A second line of inquiry suggests that intuit-
sible to conscious thinking, how one arrives at ing may involve the use of more complex, but
them is not. Hence, there is no awareness of the still not consciously accessible, cognitive struc-
rules of knowledge used for inference during tures. For instance, drawing on the work of Agor
intuiting (Shapiro & Spence, 1997: 64). Similarly, (1989), Shirley and Langan-Fox (1996: 573) have
Osbeck writes that intuition, from a philosophi- argued that intuiting results from a process of
cal perspective, involves direct apprehension recognition and retrieval in which large num-
that is not mediated by other reasoning or rep- bersperhaps several thousands of chunks or
resentation (2001: 123). As we discuss below, patterns stored in long-term memory are ac-
this quality differentiates intuition from insight. cessed without conscious effort. This stream of
research, focusing largely on the intuitions of
experts (e.g., surgeons making life-and-death
Intuiting Involves Making Holistic Associations
decisions, chess masters engaging in competi-
A second characteristic of intuiting is that it tion), contends that experts possess highly so-
involves a process in which environmental stim- phisticated, nonconscious cognitive structures
uli are matched with some deeply held (noncon- that permit rapid and accurate responses to
scious) category, pattern, or feature. Historically, highly demanding situations (Dreyfus & Drey-
this matching process has gone by numerous fus, 1986; Klein, 1998, 2003; Prietula & Simon,
names, including awareness (Wild, 1938), appre- 1989; Simon, 1987, 1992, 1996; Simon & Chase,
hension (Rorty, 1967), recognition (Simon, 1996), 1973). Such research has tended either to favor
and seeing (Osbeck, 1999). More recently, Raidl the use of intuition over more rational models or
and Lubart described intuition as involving a to position intuition as a useful complement to
process of linking disparate elements of infor- analytical thinking. Thus, intuition is seen as a
mation (2000-2001: 219). This linking together of subset of the entire population of decision-
elements is why many refer to intuiting as being making approaches successfully used by ex-
associative (Epstein, 1994; Epstein et al., 1996; perts. However, common to both the heuristic
Kahneman, 2003). Further, because intuiting in- and expert decision-making perspectives is the
volves recognizing features or patterns (e.g., view that individuals nonconsiously make ho-
Klein, 1998), rather than making connections listic associative connections between the stim-
through logical considerations, it has also been uli they encounter and their underlying cogni-
conceptualized as holistic (Epstein, 1990; Sha- tive structures in the process of intuiting.
piro & Spence, 1997). As such, Bowers, Regehr, Making holistic associations is not only a
Balthazard, and Parker speak of intuition as in- characteristic of intuiting but also speaks to one
volving a perception of coherence (pattern, of intuitions advantages over other decision-
meaning, structure) (1990: 74). In sum, since the making approaches: our nonconscious ability to
associations in intuition refer to the recognition make such categorical connections is greater
of patterns or structures, we refer to this aspect than our ability to mimic it consciously. As
of intuiting as making holistic associations. Raiffa (1968) argues in the quote that opens our
Psychologists and other decision science paper, such ability may be undermined by our
scholars suggest that, in making holistic asso- attempts to use more conscious, or rational,
ciations, individuals nonconsciously map stim- means of making judgments and decisions. It
uli onto cognitive structures or frameworks. Re- has even been stated that, in some instances,
search has typically focused on one of two types rational analysis may prevent people from see-
of cognitive structures. The first and most com- ing the obvious (Pirsig, 1974: 196). As noted
mon line of research examines the role of rela- above, conscious thinking appears to rely on
38 Academy of Management Review January

connections made through a slow and effortful component of non-logical mental processes
analysis (Epstein, 1990, 1994; Kihlstrom, 1987). that are capable of handling a mass of experi-
These properties contrast sharply with the ho- ence or a complex of abstractions in a flash
listic and associative qualities of the experien- (1938: 305). March and Simon echo Barnards
tial system. All told, it comes as little surprise view, asserting that one of the hallmarks of in-
that intuiting is perhaps better suited than ra- tuiting, in addition to its nonconscious nature, is
tional methods to integrate wide-ranging stim- its speed:
uli into usable categories of information. The distinctive earmarks of intuition are rapid
response (a matter of seconds) and inability of the
respondent to report a sequence of steps leading
Intuiting Is Fast to the result even denial of awareness of such
A third characteristic of the intuition process, steps. . . . what impresses observers about intu-
ition is that responses, especially those of ex-
and the one that has seemed to spark the most perts, are frequently correct even though they
interest among both managers and academics, seem to have required almost no processing time
is its speed (Bastick, 1982; Burke & Miller, 1999; or effort (1993: 11).
Kahneman, 2003; Khatri & Ng, 2000; Myers, 2002).
Although there has been some debate about
Intuiting Results in Affectively Charged
whether intuiting is always fast (see Hogarth,
Judgments
2001), the vast majority of researchers view intu-
iting as quite fast especially when compared Although intuiting refers to a unique way of
with the use of rational decision-making pro- processing information, individuals often use
cesses. The centrality of speed is seen in the intuition as a nounas the product of such pro-
concepts of intuition used by philosophers (see cessing. To differentiate the process and product
Wild, 1938, for a review). Rorty for example, facets of intuition, we use the term intuitive
views this process as involving immediate ap- judgment to signify intuition in its outcome
prehension (1967: 74). Osbeck, in a newer re- state.
view of the philosophical roots of intuition, We make reference to judgments rather than
views speed as a defining aspect of intuiting some other outcome state, given the strong as-
and notes that Locke and Hume viewed intuition sociation between intuition and problem solv-
as the immediate perception of connection be- ing. To illustrate, pioneering works in manage-
tween ideas (2001: 121). rial problem solving (Barnard, 1938; Simon, 1987,
This emphasis on speed is echoed in other 1996) and classic works on decision making
more recent perspectives on intuition. Research- (Kahneman et al., 1982; Tversky & Kahneman
ers who view intuitingand nonconscious infor- 1974, 1983) focus explicitly on how individuals
mation processing more generallyas an evo- use intuiting to solve problems. This problem-
lutionary precursor to more conscious and focused treatment of intuition is echoed in the
analytical thinking point to the advantages of work of Policastro (1999), who holds that intu-
having an information processing system that ition is a type of knowledge used to orient deci-
responds quickly to environmental stimuli (Ep- sion making.
stein, 1994; Haidt, 2001; Reber, 1992). Kihlstrom We further clarify intuitive judgments as af-
(1987: 1447) similarly argues that processing in- fectively charged, given that such judgments
formation nonconsciously does not require at- often involve emotions. Chen and Chaiken (1999:
tention and, thus, does not produce the same 87), for example, suggest that the presence of
information bottlenecks that conscious pro- cognitive feelings may indicate that heuristic
cessing does. processes are operating. And, more generally,
From a managerial perspective, the speed of synonyms for intuition, such as gut feelings
intuiting is not only taken for granted but is and gut instincts (Hayashi, 2001; Shapiro &
often seen as a primary motivator for develop- Spence, 1997), as well as feeling in our marrow
ing and employing intuition at work (Agor, 1986; (Barnard, 1938: 306), reflect an affective compo-
Burke & Miller, 1999; Khatri & Ng, 2000; Klein, nent to intuitive judgments. Thus, one way that
2003). Moreover, the speed characteristic of intu- we identify a judgment as intuitive is that it is
ition has long been recognized by management accompanied by affect. For example, Agor (1986)
theorists. Barnard proclaimed intuition to be a notes that as executives make intuitive judg-
2007 Dane and Pratt 39

ments, they often experience excitement and ganizational, cognitive, and neurological
harmony. And Shirley and Langan-Fox define psychology suggests that affect and emotions
intuitions as feelings of knowing (1996: 564). are an integral component of intuitive judg-
The coupling of affect and intuitive judgments ments.
has a long intellectual history. At a very basic In sum, research suggests that affect is asso-
level, these judgments may be thought of as ciated both with the intuiting process and with
affective because they are detached from ratio- intuition as an outcome. We therefore use the
nality. Thus, rationality is often associated with term affectively charged to denote the affective
the head and intuition with the hearta tenor of intuitive judgments, as well as to reflect
common divide in philosophy. However, recent how such judgments were generated (i.e., were
research suggests other possibilities. To begin charged via an affective process).
with, intuitive judgments may be triggered by
emotions and affect. Positive mood, for example,
Other Elements Associated with Intuition
has been linked to an increase in the use of
intuition and a decrease in more rational ap- Our central characteristics of intuition are
proaches to decision making (see Weiss & Cro- based on their commonality to definitions
panzano, 1996, for a review). Similarly, manag- across philosophy, psychology, and manage-
ers often view affect as an important input to ment. In addition to their commonality, they also
intuition and describe intuitions as affect- appear to be the most core features. Conse-
initiated decisions (Burke & Miller, 1999). And quently, we have excluded some additional
Hogarth argues that emotion and affect can, characteristics of intuition since they appear to
therefore, be important inputs to intuitive result from the core characteristics we suggest.
thought in the sense that they can induce re- To illustrate, several conceptualizations of intu-
sponses without corresponding awareness ition involve a feeling of certitude (Shirley &
(2001: 61). Langan-Fox, 1996) and a perception that ones
Moreover, emotions and affect may also play intuitions are correct despite the lack of ratio-
a role in the intuition process itself and, thus, nal analysis (Bruner, 1962; Wescott & Ranzoni,
result in affect-laden judgments. Epstein (1990, 1963). This characteristic, however, likely is due
1994, 2002), for example, ties emotion and intu- to the affective and associative properties we
ition through the experiential information pro- have discussed. As noted, Agor (1986) has ar-
cessing system described above by suggesting gued that as executives make intuitive judg-
that all processes in the nonconscious (experi- ments, they often experience strong and positive
ential) system are emotionally driven. Bastick emotions (e.g., excitement, harmony). Such pos-
makes a similar argument, suggesting that in- itive feelings may, in turn, lead to an enhanced
tuitive information is accessed through appro- sense of confidence in an individuals own judg-
priate feelings (1982: 279). Epstein further ar- ments (see Tiedens & Linton, 2001, for a discus-
gues that the cognitive frameworks in the sion). Thus, if I feel good about a judgment, I
experiential system, which he refers to as sche- must be right about it.
mas, are inductively derived from emotionally In addition, the holistic, associative properties
significant experiences (1990: 170). of intuition involve recognizing patterns or other
Intriguingly, research in neuroscience has linkages among disparate stimuli. Hence, phi-
suggested a link between intuition and affect losophers have linked intuition with seeing or
via activation of basal ganglia in the human recognizing an answer (Osbeck, 1999, 2001).
brain (see Lieberman, 2000, for a review). This Because intuition involves recognizing a solu-
line of investigation has shown that basal gan- tion (Simon, 1996), it is likely that individuals
glia are engaged through positive affective will have more confidence in their intuition than
stimuli and positive emotional experience, and in a wild guess, which is often made when no
these same neural mechanisms play a central solution is recognizable.2
role in engendering the nonconscious associa-
tions that spur intuitive judgments. In essence,
both intuitions and emotional appraisals ap- 2
However, we should be clear that just because an indi-
pear to arise through highly similar neurologi- vidual has confidence that the solution is a good one does
cal pathways. Taken together, evidence from or- not mean that the individual will adopt the solution. That is,
40 Academy of Management Review January

As noted earlier in the paper, we have also ilar to guessing only in terms of its speed.
excluded characteristics ascribed to intuition Guessing neither involves affectively charged
that seem unique to a particular disciplinary judgments nor requires making associations
domain. For example, intuition is associated through nonconscious information processing. It
with both experiential (Epstein 1990, 1994, 2002) also lacks the secondary outcome associated
and system 1 (Kahneman, 2003; Stanovich & with these two characteristics of intuition: certi-
West, 2000) processes in dual processing theo- tude. Intuition is also different from instincts
ries. Both of these processes are associated with and insightsterms often used synonymously
additional characteristics (e.g., presence of with intuition in everyday speech. We follow the
vibes, seized by emotions, and pleasure lead of Hogarth (2001) and Epstein (2002) in ar-
driven) that do not necessarily accord with the guing that biological instincts (e.g., shutting
core features of intuition discussed above. Be- ones eyes in the presence of bright light) are
cause not all of these characteristics have tradi- hardwired responses or autonomic reflexes to
tionally been associated with intuition, addi- stimuli. Thus, instincts are innate capabilities
tional validation is needed before viewing them that originate outside the experiential process-
as core and central to the concept. ing system.
Next, insights or sudden unexpected
thoughts that solve problems (Hogarth, 2001:
Intuition Defined and Delineated
251) may involve experiential processing in the
To summarize, intuitions are affectively form of an incubation period. However, unlike
charged judgments that arise through rapid, intuition, insight is often a lengthy process that
nonconscious, and holistic associations. These begins with deliberate, analytical thinking that
characteristics not only capture what we mean precedes the incubation period (Hogarth, 2001;
by intuition but also help clarify which types of Shirley & Langan-Fox, 1996). Further, when a
decision-making processes are intuitive and solution is gleaned through insight, one sud-
which are not. To illustrate, of all other ways of denly becomes aware of the logical relations
making judgments and decisions reviewed here, between a problem and the answer (Lieber-
only the nonconscious use of heuristics and in- man, 2000: 110; see also Sternberg & Davidson,
ternalized patterns of information fall within 1995, for a more comprehensive treatment of in-
what we call intuition. In contrast, we believe sight). This suggests another distinction be-
that rational decision making is highly dissim- tween insight and intuition: in the former one
ilar to intuition. The former involves the use of consciously becomes aware of the logical con-
systematic procedures designed to thoroughly nections supporting a particular answer or solu-
assess all pertinent information, evaluate costs tion, whereas in the latter one is unable to con-
and benefits, and, ultimately, make a decision sciously account for the rationale underlying the
based on conscious deliberation (see Janis & judgment that has arisen.
Mann, 1977, for more detail on rational decision-
making models). In short, it is highly analytic
CONDITIONS INFLUENCING THE
and relies on logical connections. Moreover, as
EFFECTIVENESS OF INTUITIVE
we have discussed, rational decision making
DECISION MAKING
involves a completely different type of informa-
tion processing system than the experiential Thus far, we have focused largely on the pro-
system utilized in intuition. In brief, intuition cess of intuiting and how this process differs
differs from more rational models of decision from the processes that guide other forms of
making in that it is (1) nonconscious, (2) holistic, decision making, such as rational analysis. We
(3) associative, and (4) faster. now turn our attention more fully to the products
In addition, intuition differs from other deci- of intuitingintuitive judgmentsand the con-
sion-making approaches that are typically ditions that explain when these judgments are
viewed as fast. For example, intuition is sim- most effective.
In research that has focused on the effective-
ness of intuitive decision making, disagreement
individuals may still distrust intuitive means, regardless of abounds as to whether intuitive judgments lead
the veracity of the solution. to effective decisions. To begin with, a substan-
2007 Dane and Pratt 41

tial body of research suggests that the use of affect most individuals, regardless of their do-
intuition in decision making is generally infe- main knowledge, others have focused more ex-
rior to other, more rational models (e.g., Dawes, tensively on expert knowledge structures and
Faust, & Meehl, 1989; Kahneman et al., 1982; how such structures influence the quality of in-
Meehl, 1954; Schoemaker & Russo, 1993). In con- tuitive decision making within specific do-
trast, a growing body of literature suggests that mains. We seek to integrate these bodies of
for certain people, under appropriate conditions, work by examining how various degrees of do-
intuition may be as good as, or even superior to, main knowledge, ranging from simple heuris-
other decision-making approaches (Blattberg & tics to sophisticated expert schemas, may in-
Hoch, 1990; Hammond, Hamm, Grassia, & Pear- fluence the effectiveness of intuition as a
son, 1987; Khatri & Ng, 2000). decision-making approach in a given domain.
To reconcile these divergent perspectives, we
We also examine how expert schemas may form
turn to an exploration of the conditions that in-
via implicit and explicit learning.
fluence whether intuition is effective as a deci-
Second, research suggests that intuition is
sion-making approach. Our review suggests
good in some situations but not in others. For
that two broad sets of factors influence intuition
effectiveness: (1) domain knowledge factors and example, research concerned with heuristic bi-
(2) task characteristics. These factors are de- ases has focused on how the use of intuition to
picted in Figure 1. solve highly structured math and probability
First, one of the primary differences between problems can lead to highly inaccurate solu-
research on the effectiveness of intuition con- tions. However, as noted in our introduction, in-
ducted by researchers interested in heuristics tuition may be most appropriate for executive
and those interested in expert decision making decisions, which involve strategy, investment,
pertains to the relative emphasis attached to the and human resource management issues. These
existence and accumulation of domain knowl- types of decisions are far less structured than
edge. While some scholars have tended to focus math problems. We discuss each set of intuition
primarily on heuristics and heuristic biases that effectiveness factors below.

FIGURE 1
Factors Influencing the Effectiveness of Intuitive Decision Making
42 Academy of Management Review January

Domain Knowledge Factors: Schemas shortcomings of heuristics and stereotypes. It


essentially takes a requisite variety approach
An individuals knowledge of a domain is re-
that the complexity of schemas should match
flected in the schemas he or she has about that
environmental complexity in order to be effec-
domain. We use the term schema generally to
tive (see Weick, 1995). We further suggest that
denote various cognitive structures that repre-
heuristics may be more domain independent
sent knowledge about a concept or type of stim-
and may be commonly applied (inappropriately)
ulus, including its attributes and the relations
across various domains. With regard to domain
among those attributes (Fiske & Taylor, 1991:
independence, the relative lack of domain sen-
98). We suggest that a primary means for deter-
sitivity diminishes the effectiveness of intuitive
mining when intuition will be effective involves decision making as simple rules of thumb are
the nature of schemas employed by the intuiter. indiscriminately applied to an inappropriately
As we discuss below, schemas may be relatively large number of problem domains. With regard
simple and contain little domain knowledge to the frequency of their use, research suggests
(i.e., are domain independent), as in the case of that individuals who lack adequate domain
heuristics (Denes-Raj & Epstein, 1994; Tversky & knowledge may have inflated self-assessments
Kahneman, 1974). Alternatively, schemas may of their own ability to make accurate judgments
be complex and contain much domain knowl- (Kruger & Dunning, 1999) and, thus, may have a
edge, as in the case of experts cognitive maps higher propensity to apply simple schemas
(Simon, 1996). across a wide variety of situations.
Heuristic schemas. In a well-established body Expert schemas. While the heuristic-based
of research in psychology and the decision sci- view of intuition has dominated research on in-
ences, scholars have argued that intuition in- tuition and problem solving, a growing body of
volves the use of heuristicsmental shortcuts research suggests that that experts can make
that reduce the complex tasks of assessing prob- highly accurate intuitive decisions (Dreyfus &
abilities and predicting values to simpler judg- Dreyfus, 1986; Klein, 1998, 2003; Prietula & Simon,
mental operations (Tversky & Kahneman, 1974). 1989; Simon, 1987, 1992, 1996). We argue that the
When presented with a problem, individuals main difference between these bodies of re-
can use heuristics to draw associations among search lies in the nature of the schemas of ex-
multiple stimuli, to focus on critical information, perts, which are (1) highly complex and (2) do-
and to develop a perception of the right answer main relevant.
or best route by which to proceed. Simon and Chases (1973) foundational article
While heuristics are often useful for quickly on the memory storage patterns of chess mas-
assessing probabilities and making decisions ters and grandmasters provides an early exam-
in uncertain situations, they may also lead to ple illustrating the role of complex schemas in
severe and systematic errors (Tversky & Kahne- guiding the decisions of experts. This study re-
man, 1974). Indeed, a large portion of decision- vealed that chess masters are able to recognize
making literature over the past three decades at least 50,000 different configurations of chess
has focused on heuristic-based judgmental er- pieces on sight, which are stored or chunked
rors. Such studies suggest that while the appeal as familiar patterns in long-term memory. When
of heuristic-based intuition is strongand that presented with an arrangement of pieces on a
individuals will often choose to use heuristics, chessboard, chess masters almost immediately
even when they know it is not rational to do so recognize both the patterns of the chess pieces
(Denes-Raj & Epstein, 1994)rational processes and the appropriate strategic moves for the
for problem assessment are less subject to ran- given situation. Consequently, grandmasters in
dom inconsistencies and systematic distortions speed chess competitions can effectively play
(Schoemaker & Russo, 1993). several games simultaneously, even when they
We argue that heuristics and other simple are only allowed a few seconds per move (Simon
cognitive frameworks are likely to lead to inac- & Chase, 1973).
curate intuitive judgments because they tend to Broadening these findings beyond the chess
be simple and, thus, may be inadequate to domain, expert intuition may be aptly de-
process complex environmental stimuli. This ar- scribed as a pattern matching process,
gument mirrors the bulk of research on the whereby information is encoded and chunked
2007 Dane and Pratt 43

into patterns, stored in schemas, and then briefly review the general relationship between
equated with environmental stimuli (Simon, learning and the formation of complex, domain-
1996). As Prietula and Simon note when discuss- relevant schemas.
ing the difference between a novice and experi- Explicit learning. Explicit learning occurs
enced foreman: when individuals are consciously aware that
changes are accruing to their underlying knowl-
In fact, the veteran does not scan the environment
and process information any faster than the inex- edge bases (Lovett, 2002). Perhaps the most re-
perienced foreman; rather, he (or she) has learned searched link between explicit learning and in-
to grasp the meaning of certain patterns of oper- tuition has been on how experts, such as chess
ations and activity on the plant floor. In a sense, grandmasters, come to attain mastery over a
the foreman does not need to think about this particular domain. The general argument pos-
information; he simply reacts to it (1989: 121).
ited in this research is that experts deliberately
Scholars advocating for the effectiveness of develop a vast repertoire of patterns in memory
expert or mature intuition (e.g., Baylor, 2001; that allows them to respond to contingencies in
Blattberg & Hoch, 1990; Burke & Miller, 1999) use an automatic and proficient manner (Simon,
the same underlying logic as Simon and his 1996; Simon & Chase, 1973). Thus, we suggest a
colleagues: experts have complex cognitive general relationship between explicit learning
maps (or schemas) that trigger effective intuitive and intuition effectiveness.
judgments. Proposition 2: Explicit learning will
Despite the promise of these complex sche- positively influence the effectiveness
mas for effective decision making, an important of intuitive decision making through
boundary condition applies. Because complex the formation of complex, domain-
schemas develop in a particular domain (ones relevant schemas.
area of expertise), they are more likely to lead to
effective decisions in that domain than when However, learning is heightened with certain
used in a different domain or context. Thus, com- types of practice. Research suggests three pri-
plex managerial schemas may serve a manager mary elements of good practice: duration, rep-
well at the office but may lead to inaccurate etition, and feedback. First, development peri-
intuitive judgments at home. This suggests that, ods for mastery tend to be long. With respect to
for intuitions to be effective, schemas must be the relationship between practice and expert
both complex and domain relevant. intuition in management, Khatri and Ng argue
that, for managerial intuition to be effective, it
Proposition 1: Individuals who can requires years of experience in problem solv-
bring complex, domain-relevant sche- ing and is founded upon a solid and complete
mas to bear on a problem are more grasp of the details of the business (2000: 58).
likely to make effective intuitive deci- More specifically, research suggests that a ten-
sions than those who employ heuris- year period of intense preparation appears nec-
tics and simpler, domain-independent essary for achieving expertise in a domain (Er-
schemas. icsson & Charness, 1994; Ericsson, Krampe, &
Tesch-Romer, 1993; Simon & Chase, 1973).
Additional characteristics of practice that
Domain Knowledge Factors: Learning
strengthen the link between explicit learning
In addition to research on the content of sche- and the development of complex, domain-
mas, in a growing body of work, researchers are relevant schemas are repetition and feedback.
exploring how individuals come to gain the Ericsson and colleagues, for example, argue
complex, domain-relevant schemas needed for that it is only through deliberate practice, in-
effective intuition. The literature on expertise volving repetition and successive refinement
discussed above suggests that there may be a through concentration and immediate, accurate
learning component to developing the schemas feedback, that an individual will develop the
that underlie accurate intuitive judgments. In capacity to perform as an expert (Ericsson &
particular, researchers are coming to connect Charness, 1994; Ericsson & Lehmann, 1996; Erics-
the formation of sophisticated cognitive struc- son & Smith, 1991). Similarly, Hogarth (2001) ar-
tures to both explicit and implicit learning. We gues that practice done in kind learning struc-
44 Academy of Management Review January

tures will facilitate effective intuition. Kind edge is stored in the brain differently from other
learning structures are those where feedback is types of knowledge. To illustrate, knowledge ac-
both relevant and exacting. Relevant feedback quired via implicit learning will be retained
is conceptualized as speedy and accurate feed- when an individual suffers from amnesia, even
back that enables the individual to learn to as- when more explicit knowledge is lost (Seger,
sign proper causal relationships among deci- 1994). This suggests that although explicit and
sions, actions, and outcomes. Exacting feedback implicit learning can occur simultaneously in a
implies a significant need for precision. A brain given context, implicit learning involves a dif-
surgeon, for example, has little room for error ferent process of knowledge acquisition and
while operating on a patient. Exacting feedback storage.
generally leads to accurate learning because Both implicit learning and intuition have been
small errors can have serious consequences. linked to the nonconscious processing system
In sum, we argue that individuals who want to described earlier. Just as intuition involves a
form complex, domain-relevant schemas must nonconscious, experiential processing of infor-
engage in repetitive practice over a long period mation stored in memory, implicit learning re-
of time. They must also receive feedback about fers to a similar nonconscious process of knowl-
their performance that is both accurate and ex- edge acquisition. Reber (1989) has tied implicit
acting. learning to intuitive knowledge and argues
that it is through implicit learning that individ-
Proposition 3a: The relationship be- uals come to form the complex cognitive struc-
tween explicit learning and the for- tures necessary for intuitive judgments and de-
mation of complex, domain-relevant cisions. In support of this claim, researchers
schemas will be strengthened when have linked implicit learning to the acquisition
individuals engage in focused, repet- of grammar rules (Reber, 1989; Reber et al., 1991)
itive practice over long periods of and spatial processing algorithms (e.g., Lewicki
time. et al., 1988), as well as to other types of knowl-
Proposition 3b: The relationship be- edge acquisition, such as covariation and puzzle
tween explicit learning and the for- learning (see Seger, 1994, for a review of implicit
mation of complex, domain-relevant learning tasks).
schemas will be strengthened when We believe that implicit learning may result
individuals perform in the presence of in the complex, domain-relevant schemas nec-
kind learning structures (rapid and essary to engender the effective use of intuitive
accurate feedback and exacting con- judgments in managerial decision making. To
sequences). illustrate, the veteran foreman noted earlier by
Prietula and Simon (1989), who has learned to
Implicit learning. While explicit learning may grasp the meaning of certain patterns of opera-
indeed make for more advanced and effective tions and activity on the plant floor, may have
intuitive decision making in some situations, a developed this proficiency not simply through
growing body of research suggests that it may explicit learningsince it is unlikely that the
not always be necessary for the formation of foreman deliberately practiced observing op-
complex, domain-relevant schemas. Instead, erations on the plant floor but, rather, through
schemas may develop through implicit learning. implicit learning as well.
Implicit learning refers to the process by which
Proposition 4: Implicit learning will
one acquiresoutside of ones conscious aware-
positively influence the effectiveness
nessknowledge about the structure or pattern
of intuitive decision making through
underlying a complex stimulus environment
the formation of complex, domain-
(Reber, 1989: 219; see also Lewicki, Hill, & Bizot,
relevant schemas.
1988; Reber, 1992; Reber, Walkenfeld, & Hern-
stadt, 1991; Seger, 1994; Stadler & Frensch, 1998). It is important to note that just as there are
Implicit learning differs from its external factors that strengthen the relationship between
counterpart in important ways. Not only are in- explicit learning and the formation of complex,
dividuals unaware that such learning is occur- domain-relevant schemas, there are also factors
ring, but research suggests that implicit knowl- that strengthen the link between such schema
2007 Dane and Pratt 45

formation and implicit learning. In particular, product planning, and corporate strategy forma-
while implicit learning is largely automatic, tion. These unstructured problems are condu-
there is some research that suggests that indi- cive to intuition because of the absence of well-
viduals may be able to process stimuli in ways accepted decision rules for dealing with such
that allow implicit learning to function more situations. Echoing this argument, other re-
effectively (Seger, 1994: 176). Such control may searchers have argued that analytical strate-
be afforded by consciously paying attention to gies that work well for problems that are well-
the stimuli in question (Carlson & Dulany, 1985; defined are much less effective for ill-defined
Nissen & Bullemer, 1987). Attention, however, is problems (Claxton, 1998; Hayashi, 2001). Intu-
not focused on attempts to deliberately decipher ition, as a holistically associative process, may
cause and effects. As Rebers research has actually help to integrate the disparate ele-
shown (Reber, 1976; Reber, Kassin, Lewis, & Can- ments of an ill-defined problem into a coherent
tor, 1980), attention directed toward such hy- perception of how to proceed. As Shapiro and
pothesis testing will lead to substandard per- Spence (1997) further note, intuition is often more
formance. Rather, individuals should focus on effective than analysis in enabling individuals
stimuli as a whole. For example, while manag- to develop an understanding of the structure of a
ers may be unable to consciously notice those complex system. For this reason, intuitive judg-
rewards that will best motivate individuals dur- ments are said to become more effective relative
ing a time of crisis (a type of covariation learn- to rational analysis as a problem becomes in-
ing), they may facilitate the implicit learning of creasingly unstructured.
these patterns by paying attention to both re- Intellective versus judgmental tasks. We ar-
wards and employees during the crisis. Thus, gue that the notion of problem structure is
we build from this body of research and posit captured in the distinction between intellective
the following. and judgmental tasks (Laughlin, 1980; Laughlin
& Ellis, 1986; McGrath, 1984). According to
Proposition 5: The relationship be-
Laughlin, intellective tasks involve a definite
tween implicit learning and the for-
objective criterion of success within the defini-
mation of complex, domain-relevant
tions, rules, operations, and relationships of a
schemas will be enhanced when indi-
particular conceptual system, whereas judg-
viduals focus attention on the stimulus
mental tasks involve political, ethical, aes-
environment.
thetic, or behavioral judgments for which there
Returning to our initial focus on speed versus is no objective criterion or demonstrable solu-
accuracy, we suggest that intuitions are more tion (1980: 128). Laughlin (1980) views the intel-
likely to be effective when they tap into com- lective/judgmental distinction as a continuum,
plex, domain-relevant schemas than when they as opposed to a strict dichotomy.
involve heuristics. These complex, domain- While intuition theorists have not referred
relevant schemas, in turn, are more likely to be specifically to intellective and judgmental
developed when individuals engage in focused tasks, research has shown that intuition may be
and repetitive practice over a long period of most effective for moral judgments (Haidt, 2001),
time, when they operate in kind learning envi- aesthetic ratings (Hammond et al., 1987; Wilson
ronments, and when they focus their attention & Schooler, 1991), and the like. Further, research
on the stimulus environment. has shown that intuition is relatively weaker
than rational analysis for tasks involving defi-
nite objective criteria (MacGregor, Lichtenstein,
Task Characteristic Factors
& Slovic, 1988; McMackin & Slovic, 2000). Thus, it
In addition to factors surrounding the domain appears that intuitive judgments may be more
knowledge of the intuiter, evidence suggests effective than rational approaches to decision
that problem structure may also impact the ef- making on judgmental tasks, whereas the con-
fectiveness of intuitive decision making. Accord- verse is true for intellective tasks. This suggests
ing to Shapiro and Spence (1997), problems lie the following proposition.
on a continuum of structuredness. At the less
structured end of this continuum lie such prob- Proposition 6: As the problem structure
lems as merger and acquisition decisions, new associated with a task becomes more
46 Academy of Management Review January

judgmental, the effectiveness of intui- Possible Relationships Among Effectiveness


tive decision making will increase. Factors
In considering the two broad sets of factors
Returning again to our discussion of speed ver-
that we view as determining the effectiveness of
sus accuracy, intuition is most likely to effec-
intuitive decision making, we have said little
tively manage this trade-off when it is brought
about whether there are any connections be-
to bear on judgmental tasks.
tween these two sets of factors. That is, we have
Factors influencing task characteristics: Envi-
yet to discuss whether domain knowledge fac-
ronmental uncertainty. While we showed earlier
that the domain knowledge factors concerning tors are in some way tied to task characteristic
intuition effectiveness are rooted in a sizable factors in the model we have proposed (Figure
body of work on explicit and implicit learning, 1). While a variety of linkages may be possible,
relatively little has been said about concepts a highly likely possibility concerns linking the
that may be linked to intuition effectiveness and most effective domain knowledge characteris-
task characteristics. The work that does exist tic expertisewith the most desirable type of
suggests that the type of environment in which task for intuitionjudgmental.
an organization operates may influence the ef- As noted above, the individuals most capable
fectiveness of intuitive decision making among of making the associations that trigger accurate
managers (Agor, 1986; Khatri & Ng, 2000; Shapiro intuitive judgments are those who possess com-
& Spence, 1997). In one of the few empirical plex, domain-relevant cognitive structures
studies in this area, Khatri and Ng (2000) found within a particular domain. Such individuals
moderate support for their thesis that, during may be referred to as experts (Chi, Glaser, &
times of environmental uncertainty, the use of Farr, 1988; Dreyfus & Dreyfus, 1986; Prietula &
intuitive decision making among executives re- Simon, 1989; Shanteau & Stewart, 1992). In Fig-
sults in greater organizational performance. ure 1 we identify a link between expertise and
Unfortunately, based on this study alone, it is intuition effectiveness via the direct connection
difficult to conclude why this result was found. drawn from complex, domain-relevant schemas
However, one likely possibility is that during to the effectiveness of intuitive decision making.
times of environmental instability, managers However, this argument raises the question of
have to collect and sort through a large, and whether the relationship between schema type
often incomplete, amount of data in a short time and intuition effectiveness is always of a simi-
(Khatri & Ng, 2000). That is, decision-making lar magnitude across various types of tasks. Ev-
tasks in these environments may be nonroutine. idence suggests that the answer to this question
Building on this perspective, we suggest that is not necessarily.
environmental uncertainty results in a shift As we have suggested, the holistic and asso-
away from structured problems and standard ciative properties of intuition may help to inte-
operating procedures and is likely to result in a grate the disparate elements of an ill-defined, or
multitude of plausible alternative solutions, judgmental, problem into a coherent perception
rather than a single objective criterion for suc- of how to proceed. Experts may be especially
cess. Under such conditions, decision-making well-suited to draw these holistic associations
scenarios may move from the intellective end of on judgmental tasks because the sophistication
the task continuum toward the judgmental end. of their cognitive structures may permit them to
Thus, the positive relationship found between integrate the components of an ill-structured
environmental uncertainty and the effective- problem with relative ease. Such an interaction
ness of intuitive decision making may be medi- is implied in many of the examples in the be-
ated by the task characteristics described ginning of our paper. For example, the develop-
above. ment of the Dodge Viper and the prime-time
launch of Who Wants to Be a Millionaire both
Proposition 7: The relationship be- involved highly experienced executives faced
tween environmental uncertainty and with ill-structured tasks.
the effectiveness of intuition is medi- In contrast, well-defined or intellective tasks
ated by judgmental task characteris- may not call for the same extent of holistic and
tics. associative connections. As argued above, such
2007 Dane and Pratt 47

tasks may be approached more effectively conditions in which individuals tend to trust in
through analytical procedures. Moreover, re- or rely on their intuitions. Intuition use factors
search suggesting that the intuition of experts is are critical, because even if we can foster intu-
ineffective has tended to examine decision mak- itions that are accurate (e.g., through complex,
ing involving highly structured tasks (Bazerman, domain-relevant schema), these intuitions must
1986; Dawes et al., 1989; Kahneman et al., 1982). be trusted if they are to be followed. Con-
Hence, we argue that our posited link between versely, intuitions that develop through heuris-
complex, domain-relevant schemas (as pos- tics and more simplistic schemas may, in many
sessed by experts) and effective intuition may circumstances, be sufficiently compelling to be
be stronger when experts are working on judg- used as primary inputs to decision making, de-
mental tasks. Accordingly, we suggest the fol- spite their relative imprecision and dubious ac-
lowing. curacy.
Research on intuition suggests a variety of
Proposition 8: The relationship be-
conditions in which we are most likely to use our
tween complex, domain-relevant sche-
intuitions rather than to invoke and rely on ra-
mas and the effectiveness of intuitive
tional analysis. Among the most common are
decision making is moderated by task
the presence of positive moods (e.g., Bless,
characteristics such that as tasks be-
Bohner, Schwarz, & Strack, 1990; Elsbach & Barr,
come more judgmental, the strength of
1999; Isen, Means, Patrick, & Nowicki, 1982;
the relationship will increase.
Ruder & Bless, 2003; Schwarz, Bless, & Bohner,
1991) and the role of stable individual differ-
DISCUSSION AND IMPLICATIONS ences in thinking style (Briggs & Myers, 1976;
Pacini & Epstein, 1999; see also Jung, 1933). How-
We have attempted to better delineate what
ever, there may be other, less explored use fac-
intuition is3 and when people are likely to use it
tors that merit further attention.
well. In this effort we have synthesized a large
To illustrate, research might explore the role
and disparate body of research on intuition and
of the body in intuition. Bastick (1982) directly
moved the field forward through the develop-
ties intuition with body knowledge, and Agor
ment of several theoretical propositions. How-
(1986) and Hayashi (2001) link the use of intuition
ever, it is sometimes only in taking stock of what
with specific body cues. More generally, affec-
is known that it becomes clear what is not.
tive descriptions such as gut feelings tie
While this review helps address many issues
changes in emotions to bodily changes. In a
regarding intuition, it raises several other is-
fascinating study, Bechara, Damasio, Tranel,
sues, and several additional avenues for re-
and Damasio (1997) found that individuals
search, as well. Our comments in this section
asked to play games where the rules are not
concern the issues we feel are most critical to
known, but which differ in terms of their level of
bear in mind when conducting further research
risk, will generate skin conductance responses
on intuition.
before engaging in high-risk games, even before
they have consciously understood that the
Intuition Use Factors games are risky. This suggests that the body
may know and be transmitting information
While we have focused extensively on the fac-
outside of conscious awareness. Further, as
tors contributing to the effectiveness of intuitive
Bodenhausen (1990) has shown, circadian varia-
decision making, we have said little about the
tions impact the use of heuristic stereotypes
such that individuals who are most alert in the
3
We should note that we have been viewing intuition as
morning (morning people) are more likely to
a relatively homogenous concept. Wild (1938), however, ar- rely on heuristic processing of information late
gued for the existence of aesthetic, moral, and religious in the evening, whereas night people exhibit
intuition. Further, he noted that intuition can arise from the opposite pattern. While promising, research
divine sources and from the collective unconsciousand not
that examines the connection between the body
just from our own experientially based cognitive schemas.
Future research may help to disentangle what have been and the use of intuition remains scant.
perceived as different types of intuition (e.g., managerial More macro determinants of use, such as
versus mystical intuition). cultural factors, may also play a role in intuition
48 Academy of Management Review January

use. For example, cultures with a low emphasis switch between habits of mind and active
on uncertainty avoidance (Cyert & March, thinking is the ultimate skill in todays organi-
1963; Hofstede, 2001) are willing to take un- zations.
known risks and are comfortable with ambi- Researchers have put forth a variety of recom-
guity and chaos (Hofstede, 2001: 161). Because mendations about how to use intuitions in com-
intuitive judgments are, by their very nature, bination with more rational decision making.
difficult to justify rationally and often involve For example, Blattberg and Hoch (1990) exam-
unknown levels of risk, cultures low in uncer- ined the specific weightings that should be ap-
tainty avoidance may be more inclined than plied to rational models and intuitive judg-
other cultures to favor intuitive judgments in ments, respectively, in making decisions. In
decision making. The masculine versus femi- assessing the accuracy of brand managers pre-
nine cultural distinction (Hofstede, 2001) may dictions of coupon redemption rates as com-
also account for differences in the use of intu- pared to a mathematical forecasting model, they
ition across cultures. In particular, feminine cul- determined that a 50/50 weighted combination
tures, which emphasize the importance of feel- of model forecast and manager intuition leads
ings over logic, may be inclined to accept forms to more accurate predictions than either deci-
of judgment that are tied to affect and emotion. sion-making method in isolation.
If, as we contend, intuition is tied to affect and Shapiro and Spence (1997) further argue that
emotions, intuitive decision making may be re- the ordering of the two types of decision making
spected and employed in feminine cultures. is also important. They suggest that intuition
Consistent with this argument, Hofstede (2001: should be recorded first, followed by a more
318) notes that managers in feminine cultures thorough analytical assessment of the problem.
are expected to use intuition and deal with feel- The degree to which rational decision making
ings. should be emphasized, however, should depend
More generally, research should be done to on the nature of the task (e.g., structured or un-
more explicitly link intuition use factors with structured). In contrast, Agor (1986) argues that
those factors we have identified as being inte- many managers use intuition after engaging in
gral to intuition effectiveness. For example, it rational analyses, for the purpose of synthesiz-
may be the case that learning processes link the ing and integrating the information gathered
two models: as individuals use intuition more, and analyzed. Unfortunately, while many pro-
they may become more effective in its use. Other vocative ideas about the interplay between ra-
factors may also be common to both intuition tional and intuitive decision making have been
use and effectiveness. For example, judgmental suggested, empirical research in this area, par-
tasks such as moral and aesthetic problems, ticularly in the field of management, remains
which may be particularly conducive to intuitive insufficient.
problem solving, may also trigger the use of
intuition (Haidt, 2001; Hammond et al., 1987).
Beyond Decision Making
We have focused primarily on the role of intu-
Interplay Between Intuition and Analysis
ition in decision making. However, intuition
In our attempt to differentiate intuition from may have other positive benefits as well. To
other decision-making approaches, such as ra- illustrate, some preliminary work suggests a
tional models, we did not discuss at length link between intuition and creativity. Langer
when and how different ways of knowing might (1989: 117), for example, has suggested that cre-
complement each other. Researchers who advo- ativity arises through an intuitive experience of
cate a dual process approach assume that these the world, whereas rational thinking serves
two systems of knowing work together in mak- only to confirm old mindsets and rigid cate-
ing decisions. In a similar vein, Simon (1987) gories. Likewise, Poincare (1969: 210) has de-
asserts that effective managers do not have the clared that logic is the instrument of demon-
luxury of choosing between analysis and intu- stration, and intuition the instrument of
itionreal expertise involves the use of both invention. However, with the exception of a few
types of decision making. And Hodgkinson and studies (e.g., Raidl & Lubart, 2000-2001), little em-
Sadler-Smith (2003: 261) argue that the ability to pirical research has connected intuition to cre-
2007 Dane and Pratt 49

ativity. In light of the growing interest in creativ- In addition to highlighting the promises of
ity in the management sciences, unpacking how intuition, our research also reveals potential
intuition ties in with creative thought may yield challenges and barriers to facilitating effective
valuable theoretical contributions to this line of intuitions. To illustrate, one could argue that the
research. rapid rate of change that characterizes current
Next, recent appeals for additional scholarly organizational environments makes intuitive
work on business ethics (e.g., Donaldson, 2003) decision making more necessary today than it
suggest a need for fresh perspectives on moral has been in the past. However, it is also true that
reasoning and ethical decision making in orga- job mobility is increasing. As a result, individu-
nizations. As noted above, Haidt (2001) has ar- als are less likely to engage in a significant
gued that moral judgments are intuitive. Thus, degree of focused practice in a particular do-
by better understanding how intuitive judg- main (Prietula & Simon, 1989). In our language,
ments are made, we might better identify the this suggests that individuals may not be able
conditions under which individuals disregard to form complex, domain-relevant schemas
their intuitions (i.e., their moral sense of ethical and, thus, must rely more often on simple sche-
behavior) and engage in actions that conflict mas and heuristics. This is likely to result in the
with principles of ethics in organizations. less effective use of intuitive judgments at a
time when their use is increasingly critical. Ac-
cordingly, organizations that retain members for
long periods of time in similar job domains may
Managerial Implications
be more likely than others to provide members
We believe that research on intuition is inher- with sufficient conditions to develop complex,
ently practical. In this paper we have suggested domain-relevant schemas. This suggests a need
factors that may lead managers to make good to reduce the rate of member turnover in order to
decisions quickly. Thus, organizations that wish foster the development of more effective intui-
to facilitate effective intuiting need to concen- tive decision making among members. Reten-
trate on promoting ongoing and deliberate prac- tion is critical if one is to keep highly special-
tice in kind learning environments. They may ized knowledge workersa crucial component
also encourage managers to be mindful of their to competing in a knowledge economy.
environments in order to facilitate implicit Keeping experts, however, is only one chal-
learning. By remaining alert and viewing prob- lenge in utilizing experts in a knowledge econ-
lems from multiple perspectives, mindful omy (Matusik & Hill, 1998). Ideally, the informa-
managers may form new cognitive categories tion from experts can be captured by the
and distinctions (see Langer, 1989) that bolster organization (Hammer, Leonard, & Davenport,
the complexity and domain relevance of their 2004; Osterloh & Frey, 2000). Can the complex,
schemas. Finally, we have suggested that man- domain-relevant schemas of experts be trans-
agers should be wary of using intuitions when ferred to automated information systems or to
faced with intellective tasks. other individuals? While we have identified the
In this discussion section we have also sug- conditions under which an individual can gain
gested how future research might better under- complex, domain-relevant schemas, it is not
stand the relationship between intuition effec- clear whether or how the content of these sche-
tiveness and use, thus ensuring that individuals mas can be transferred from one individual to
feel comfortable trusting their gut when ap- another. Classic work on the transfer of exper-
propriate (e.g., when the individual has domain tise, however, suggests that having experts
expertise and is working on a judgmental task). working together with novices may be critical to
Moreover, we believe that better understanding this issue (Collins, 1982).
how intuition and rational analysis work to- A related challenge for managers concerns
gether will result in an even more complete pic- the transferability of intuitive skills across
ture of decision effectiveness among managers fields and industries. Organizations, interested
and other organizational members. Beyond de- in acquiring individuals with expert knowledge,
cision making, understanding how intuition often hire managers and executives from other
plays a role in creativity and ethics seems crit- firms and agencies. While such individuals are
ical to improving key organizational processes. pursued for their rich knowledge bases and de-
50 Academy of Management Review January

cision-making abilities, our model proposes that to focus extensively on these mechanisms and
cognitive schemas must be domain relevant to how they may influence behavior in organiza-
generate accurate intuitive judgments. For this tions. For this reason, we hope that our treat-
reason, an individual who possesses expert in- ment of intuition may help to put the noncon-
tuition in one field or industry may not be as scious into organizational studies.
effective in making intuitive decisions in a field
or industry that differs substantially from the
environment in which the individuals cognitive
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Erik Dane (erikdane@uiuc.edu) is a doctoral candidate in organizational behavior at


the University of Illinois at Urbana-Champaign. His current research explores how
professionals leverage their experience and intuition to respond effectively to job-
related challenges.

Michael G. Pratt (mpratt@uiuc.edu) is a James F. Towey Fellow and associate profes-


sor of organizational behavior at the University of Illinois at Urbana-Champaign. He
earned his Ph.D. in organizational psychology from the University of Michigan. His
current research explores intuition, meaning, and identity dynamics among profes-
sionals.

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