Article Gold Open Access 2022

Assessing the Core Variables of Business Managers’ Intuitive Decision Ability: A Review and Analysis

Behavioral Sciences
Journal · Vol. 12 · Issue 11 · Art. 409
Abstract

Business decisions are frequently based on informed intuition in contrast to a formal analysis. Early man used simple intuition, but through time knowledge increases allowed decision makers (DMs) to move to ‘objectively informed intuition’ (OII). This uses inherent and learnt cognition at both unconscious and conscious levels. A model of business OII is proposed and evaluated using as variables the managers’ personal characteristics and their unique set of objectives. The resultant equation allows assessing decision quality and provides a framework for DMs to work on improvements relative to their objectives. The literature suggests OII stems from a DM’s makeup (business related phenotype), training and experience in a dynamic trio leading to the defining equation. Analyses show business related phenotype is the most important determinant as well as confirming the proposed theory on the determinants of OII success. Practical methods of improving OII are reviewed, and issues worth further investigation outlined. This research is the first encompassing quantitative relationships explaining business OII quality thus enabling improving OII. Suggested further research may refine the equation and expand its core base. This work involves a range of disciplines as different aspects of human characteristics impact on how decisions are made. © 2022 by the author.

Keywords

Author Keywords

business decisions decision skill evolution of intuition modelling business intuition ‘objectively informed intuition’

Index Keywords

Author Affiliations
Department of Land Management and Systems, Lincoln University, Lincoln, CAN, New Zealand
Funding & Acknowledgements
No funding information
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