Topic: Job Performance, Potential, Talent Management
Publication: Personnel Psychology (SUMMER 2011)
Article: The Practical Intelligence of Entrepreneurs: Antecedents and a Link With New Venture Growth
Authors: Baum, J. R., Bird, B. J., & Singh, S.
Reviewed By: Thaddeus Rada
Although general intelligence has been found to be a good predictor of potential success in a job, recent research suggests that other, more specific forms of intelligence may also be useful in predicting job success. One aspect of these other intelligence constructs that is particularly encouraging is that they can be developed. As such, if a particular type of intelligence were demonstrated to have an especially positive impact on individuals’ success in a given field, then education and training in this field could emphasize cultivating this form of intelligence in the people studying it. The current study, by J. Robert Baum and colleagues, examined one of these specific forms of intelligence, practical intelligence (PI), and its impact on the success of entrepreneurs. The authors focused on entrepreneurial success primarily because of the impact that entrepreneurs can have on business growth and job creation, qualities that are particularly important in light of current economic conditions.
PI emphasizes the application of knowledge to novel problems or situations. In this sense, PI, although it is a distinct construct, can be roughly equated to common sense. The authors proposed a model in which the positive relationship between PI and industry experience, and PI and venture experience, are enhanced by two modes of learning: concrete experience and active experimentation.