How Cognitive Bias Is Going to Affect Firm Performance: Entrepreneurship as a Mediating Variable

In a company, entrepreneurs as core figures need to make decisions on various matters. However, cognitive biases, one of the most common biases among entrepreneurs, affect their traits and decisions, significantly influencing company performance. This article studies three common cognitive biases: overconfidence bias, heuristic bias, and status quo bias. These biases greatly impact the quality of entrepreneurial decisions, thereby affecting company performance both positively and negatively. For the negative impacts, the article analyzes these biases and proposes strategies to help entrepreneurs better avoid their adverse effects, thus improving company performance.