The Interplay of Rationality and Intuition in Strategic Decision Making

Abstract: BACKGROUND: When it comes to corporate decision making, the traditional rational model suggests that deliberative analysis yields good results. Thus, when contemplating strategic moves, executives are “required” to conduct deliberative analyses. As today’s business environment is becoming increasingly complex and fast-paced, however, executives often face the dilemma of having to make carefully considered strategic decisions on the one hand and not having enough time on the other hand. Intuition offers an efficient solution in this situation. PURPOSE: The purpose of this study is to investigate how corporate executives employ both rationality and intuition in making strategic decisions under uncertain, complex and time-pressured circumstances. RESEARCH METHOD: We conducted three face-to-face interviews with executives from three companies in Sweden. Each interview lasted around one hour.    RESULTS: Drawing on previous psychological and managerial research, we argue that rationality and intuition are better viewed as being complementary rather than separate. Findings from the study suggest that intuition could serve as an effective and efficient means for managers to make strategic decisions; and that intuition indeed plays a role in strategic decision making under complex, uncertain and time limited contexts.