Measuring Levels of Fundamental Attribution Error Ascribed To Leadership of Entrepreneurial Organizations Across National Cultures

Abstract

This study empirically assesses respondent’s attribution to organizationaloutcomes across multi-national communities. As applied to entrepreneurship, theFundamental Attribution Error (FAE), nominally defined as the naturally occurringcognitive bias of humans to over-attribute organizational outcomes to leadershipdispositions and in the case of celebrity entrepreneurship, a heightened attributionto the news-worthy disposition of celebrity-entrepreneurs. Likewise, there wouldbe a biased and corresponding under-attribution of organizational outcomes tocircumstantial factors. Within this current research, respondents within differingcultures report on their perceptions of importance of founder dispositions toentrepreneurial outcomes. A survey instrument measuring differential dispositionand circumstantial attribution was developed and results showed strong FAE acrosscultures. Evidence was found that perceivers external to the organization exhibitstrong attribution error globally and that business leaders attribute business successto their own talents and reinforce FAE. A small difference in levels of FAE betweenindividualistic and collective cultures was found. Implications of the findingsare discussed in relation to organizational behavior, organizational development,organizational outcomes and rates of return on invested capital.