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The high failure rate for expatriate leaders is well documented. One major cause of these failures has been identified as the incongruencies in the perceptions of expatriate leaders and the host members that they manage. This article describes theory and research which suggests that a potential explanation for at least some of these perceptual incongruencies is that they are a result of culturally‐based attributional biases interacting with self‐serving and actor‐observer attributional biases. Although not all of the interactions of these biases result in incongruent perceptions, some interactions appear to be particularly prone to result in incongruent perceptions such as when leaders from highly individualistic and low context cultures interact with members from highly collectivistic and high context cultures. Suggestions for research and interventions designed to reduce incongruent attributions between leaders and members are discussed.

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