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Self serving bias: definition, examples and practical tips

Self serving bias
Biases

Written by Niek van Son MSc on January 17, 2025

Niek van Son

Introduction

As entrepreneurs, we are constantly faced with important decisions and evaluations. We analyze our performance, adjust where necessary and plan for the future. But how objective are we really in these assessments? When a product is successful, we quickly conclude that it is because of our excellent market insight. But when that same product flops, it's because of unfavorable market conditions or the accidental launch of a competing product.

This self-serving bias, while natural and even partly functional for our self-confidence, can be dangerous for entrepreneurs. It can lead to blind spots in our strategy, missed opportunities for improvement and even overconfident decisions that jeopardize our business. In this article, we dive deeper into this fascinating psychological bias. We explore how it affects our entrepreneurial behavior and, more importantly, how we can use this knowledge to make better, more objective business decisions.

What is the self-serving bias?

In the self serving bias, you believe successes are due to internal factors, such as your own actions and skills, but attribute a negative outcome or failure to external factors beyond your control, such as bad luck or the actions of others (Heider, 1958).

Surprisingly, the self serving bias is more common when you have a less close relationship with someone than when you have a close relationship (Sedikides, Campbell, Reeder & Elliot, 1998). Consider, for example, colleagues on your team. Self-serving bias also occurs on a larger scale, where whole groups of people shrug off responsibility in the face of social problems, for example.

The self serving bias ensures that we do not feel responsible for shortcomings, so we also do not see the need to work on them and learn from our mistakes. As a result, no growth takes place and it can work against you in (work) relationships, for example, that you do not show self-reflection.

How does the self-serving bias arise?

First, the self-serving bias has evolutionary origins, where protecting self-esteem and self-confidence (Myers, 2015) was crucial for survival and leadership in social groups. This foundation is reinforced during early development, when children learn to associate positive experiences with themselves, partly through parental compliments and their protective attitude in the face of adversity. The bias also performs an important emotionally protective function: it protects our self-image from negative experiences, helps maintain motivation after setbacks, and reduces feelings of helplessness and depression. Social reinforcement then plays a major role, with people with self-confidence being viewed more positively and the media and business culture putting "winners" on a pedestal. Finally, cognitive mechanisms play a crucial role: our brain processes positive feedback differently than negative feedback, we remember successes better than failures, and we actively seek information that confirms our positive self-image.

In the West, we value personal achievement, so you see the self serving bias more often here (Mezulis, Abramson, Hyde & Hankin, 2004). In Asian countries, for example, group effort is emphasized more and you see the self serving bias less. People who are depressed are less likely to show the self serving bias (Hooghiemstra, 2008). They are more likely to blame failures on internal factors and success on luck or other external factors.

Examples in practice

  • An experienced entrepreneur sees his sales increase by 50%. "You see my new marketing strategy is working," he proudly concludes. What he prefers not to mention: the biggest competitor in his region quit, and many customers simply had no alternative.
  • A Web shop owner is seeing her sales plummet. "It's because of those new EU regulations and high inflation," she explains to her network. She avoids acknowledging that she failed to invest in mobile optimization, even though 70% of her visitors store via smartphone.
  • A consultant loses a major assignment to a competitor. "That competitor simply offered a much lower rate," is his explanation. He ignores client feedback that his presentation came across as unprepared and he couldn't answer crucial questions.
  • A restaurant owner is having a banner year. "Finally my years of commitment to quality are being rewarded," she beams. She "forgets" to mention that the municipality has just opened a large office complex across the street from her business, providing a steady stream of new lunch guests.

Using the self-serving bias to your advantage

The self serving bias can be problematic if we do not acknowledge our own part in the mistakes made, making it more likely that we will repeat ourselves. But it is also good to be aware that the self serving bias also plays out in others.

In communication with customers:

  • Give them an active role in the success: "Thanks to your clear feedback, we were able to perfect this product."
  • Acknowledge their contribution to positive outcomes: "Your choice of sustainable options makes a real difference"
  • Be tactful when problems arise: Focus on solutions where the customer can play a positive role

In personnel management:

  • Give team members ownership of successes: "Your insight made this project succeed"
  • In the face of adversity: Focus on shared learning moments and opportunities for improvement
  • Create space for people to share their successes in team meetings

In business partnerships:

  • Share successes: "Our collaboration has made this possible"
  • Emphasize joint achievements rather than individual contributions
  • Create win-win situations where both parties can be proud of their part

This strengthens relationships and builds trust, which is ultimately much more valuable than short-term gain.

Resources

Heider, F. (1958). "The psychology of interpersonal relations." New York: Wiley. p. 322

Hooghiemstra, R. (2008). "East-West Differences in Attributions for Company Performance: A Content Analysis of Japanese and U.S. Corporate Annual Reports." Journal of Cross-Cultural Psychology. 39 (5): 618-629.

Mezulis, A. H., Abramson, L. Y., Hyde, J. S., & Hankin, B. L. (2004). "Is there a universal positivity bias in attributions? A meta-analytic review of individual, developmental and cultural differences in the self-serving attributional bias." Psychological Bulletin, 130(5), 711-747.

Myers, D.G. (2015). "Exploring Social Psychology, 7th Edition." New York: McGraw Hill Education.

Sedikides, C., Campbell, W. K., Reeder, G. D., & Elliot, A. J. (1998). "The self-serving bias in relational context." Journal of Personality and Social Psychology, 74(2), 378-386.

Niek van Son
THE AUTHOR

Niek van Son MSc

Marketing Management (MSc, University of Tilburg). 10+ years of experience as an online marketing consultant (SEO - SEA). Occasionally writes articles for Frankwatching, Marketingfacts and B2bmarketeers.nl.

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