Avoiding critical entrepreneurial cognitive errors through linear/nonlinear thinking style balance

Abstract

ABSTRACT This study provides empirical evidence for why linear (for example, analytical, logical) and nonlinear (for example, intuitive, creative) thinking style balance is associated with effective entrepreneurial decision making and essential for cultivating organizational innovation. This study examined the relationship between linear and nonlinear thinking style and two common detrimental cognitive biases or errors that often interfere with effective entrepreneurial decision-making: representativeness bias and status quo bias. A sample of 261 business professionals completed a survey measuring linear/nonlinear thinking style profile and decision-making scenarios that assess each cognitive bias. The results provided evidence that linear thinking style is helpful in avoiding the representativeness bias, nonlinear thinking style is beneficial for lessening the status quo bias, and linear/nonlinear thinking style balance is effective in averting both cognitive biases. We discuss the implications of these results and future research directions for advancing theory and practice, and particularly for guiding the design of entrepreneurship education.