Functional magnetic resonance imaging (fMRI) is likely to become the major tool for studying the neural underpinnings of organizational behavior. It is a technique for brain imaging that, according to advocates, provides information about which areas of the brain are activated during organizational processes (e.g., leadership and decision‐making). In this article, we take a critical look at this tool from a technical perspective. In particular, we take the reader through the assumptions that must be made at the three main steps of the research process (study design, data capture, and interpretation of results) in order to draw conclusions about organizational phenomena from fMRI research. Applying this analysis to three case studies demonstrates the gap between what fMRI can actually tell us and the claims often made about the contribution of fMRI to understanding and improving organizational behavior. Our discussion provides researchers with a series of recommendations oriented toward optimizing the use of fMRI to help it live up to its potential in the field of organizational behavior and consumers with a means of evaluating fMRI research in order to draw appropriate and warranted conclusions. Copyright © 2016 John Wiley & Sons, Ltd.