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  • Confucian Values, Entrepreneurship, and Organizational Performance in the Public Sector:Do Confucian Values Facilitate or Constrain Entrepreneurship and Organizational Performance?M. Jae Moon, Gowoonbit Im and Junwoo LeeYonsei UniversityKorea*

  • IntroductionIs Asian Public Administration Peculiar? Confucian Values in the Public SectorConfucian Values, Leadership, Ethics, Entrepreneurship, and Organizational PerformanceData and Analysis

    *Presentation Outline

  • Public Administration is static or waning in western countries but emerging and blooming in Asian countries (# of programs, significance and social impact)

    There are many differences and similarities between western public administration and Asian public administration. Any research questions and analytical framework appealing to western PA scholars?

    Should bureaucracy be bashed? Are Confucian values constraining factors to entrepreneurship and organizational performance in the public sector?

    Any theoretical model applicable to Asian public administration?*Research Background: Why Confucian Values and Entrepreneurship in Asia?

  • Is there Asian Public Administration? If yes, what is the unique nature of Asian Public Administration? How can Confucian Values contribute to entrepreneurship?How can Confucian Values contribute to organizational performance?How can leadership and ethical climate contribute to organizational performance?Any difference among Asian countries?

    *Research Questions

  • Kahn(1979)unique cultural characteristics won't change easily and that defined as a Collective framework determine one country different from the other countries

    Hofstede and Bond(1988)hierarchical relationship among people, the family as a basic unit, Jen, and the emphasis on education

    Cheung and Chan (2005)Benevolence, harmony, learning, loyalty, righteousness and humility

    Paul McDonald(2012)Virtue(de),Harmony(he), Education(fuzi), Reciprocity(shu), Familial collectivism(xiao)

    Literature on Confucian Values*

  • Face-saving - Face saving refers to maintaining ones public dignity and the avoidance of threats to public imageHumility - In order to control the possible negative consequences arising from envy among others, Confucian societies tend to emphasize the importance of humility in expressing wealth and knowledgeHarmony(Group orientation) - Group orientation relates to a sense of community, solidarity and harmony in society, where an individual coexists with others Hierarchy - According to Confucius, everyone has a fixed position in society and each person should behave according to his or her rankReciprocity - represents a golden rule that governs almost all kinds of interpersonal relationships

    Elements of Confucian Values*

  • Product-based, Behavior-based, Procedural-based (Moon, 1999)Elements of EntrepreneurshipInnovativeness - Innovation refers to the adoption of new ideas of performing services, processes, or practices(Walker, 2008). innovative changes drive competition and creative respond to the their user(citizen)Risk-taking - as being at a disadvantage, seeking risks and vice versa(Nicholson et al., 2005) . The view of an entrepreneur as a risk taker is a dominant attribute ascribed to anyone seeking to achieve additional gainsProactiveness - Aggressive action aimed at accomplishing forward-looking outcomes has been identified as a critical characteristic of public entrepreneurial orientation

    Entrepreneurship*

  • Ethical climate is a key foundation of organizational performance (Moon et.al., 2012) Leadership always matter!Entrepreneurial Leadership and Ethics *

  • Theoretical Framework*

  • Global Network Research (GRN):Park, Miao, and MoonData Collected in Korea between March-May, 2015Will be Collected in China from May, 2015Respondents are government officials and public sector employees in public entities (public corporations and semi-public institutions) Local government officials in ChinaData Collection*

  • Characteristics of Sample*

    SectionCategoryFrequencypercentSectionCategoryFrequencypercentGenderMale39459.4Organization typeGovernment agency30245.6Female25838.9Executive agency21732.7Total65298.3Public agency8112.2Age20-29 y/o426.3Quasi-public agency375.630-39 y/o26139.4Other233.540-49 y/o24336.7Total66099.550-59 y/o10616.0Above y/o 1.2Characteristic of work Policy & planning12619.0Total65398.5Business and Implementation14321.6Employ-ment period1 month-3 years10916.4Audit and Evaluation213.23-5 years629.4Management and support 18728.25-10 years13921.0Data processing213.210-15 years10616.0Survey and research497.4More than 15 yr23435.3Other9914.9Total65098.0Total64697.4

  • Confucian Values*

    Face SavingHumilityGroup OrientationHierarchyReciprocityFace-saving1.256**.269**.482**. 383**Humility256**1339**174**186**Grouporientation186**339**1234**272**Hierarchy482**174**234**1518**Reciprocity383**186**272**518**1

  • Regression Analyses**p < 0.1, **p < 0.05, ***p < 0.01.

    VariablesModel 1(Entrepreneurship)Model 2(Org. Performance)Confucian ValuesFace-saving2.343**.358Humility.050-1.487Group orientation.154-.530Hierarchy-.017.734Reciprocity-2.848***1.327Entrepreneurial LeadershipEntrepreneurial Leadership13.074***7.077***EntrepreneurshipInnovativeness2.574**Proactiveness1.293Risk-taking.923EthicsEthics5.671***3.228*** Organization StructureAutonomy.568-1.471Vertical Complex-.716.168Horizontal Complex4.026***3.222***Centralization-2.018**-.849Red-tape-2.267**-.557Organization TypeOrganization Type3.105**1.618Cons.2.074**2.221**Obs.656656R-squared.456.412Adj R-squared.445.397

  • Regression Analyses**p < 0.1, **p < 0.05, ***p < 0.01.

    VariablesModel 1(Entrepreneurship)Model 2(Square term)Confucian ValuesFace-saving(Square term)2.343**.190 (Sq).209Humility.050-.048Group orientation.154.016Hierarchy-.017-.034Reciprocity(Square term)-2.848*** -1.688* (Sq)1.138Entrepreneurial LeadershipEntrepreneurial Leadership13.074***13.097***EthicsEthics5.671***5.656*** Organization StructureAutonomy.568.420Vertical Complex-.716-.790Horizontal Complex4.026***4.035***Centralization-2.018**-1.942*Red-tape-2.267**-2.334**Organization TypeOrganization Type3.105**3.158***Cons.2.074**2.074**Obs.656656R-squared.456.456Adj R-squared.445.445

  • *Structural Equation Model

  • Structural Equation Model**p < 0.1, **p < 0.05, ***p < 0.01.

    RegressionEstimateIndependent VariableConfucian Values Entrepreneurship-.031(-.016)Entrepreneur Leadership Entrepreneurship1.242(.562) ***Ethics Entrepreneurship2.618(.246)***Confucian Values Organization Performance.024(.068)Entrepreneur Leadership Organization Performance.119(.305) ***Ethics Organization Performance.263(.141)**Intervening VariableEntrepreneurship Organization Performance.056(.315)***Control VariableAutonomy Organization Performance-.044(-.120)**Vertical Complex Organization Performance-.008(-.013)Hierarchy Complexity Organization Performance.062(.163)***Central Organization Performance-.0160(-.056)Red-tape Organization Performance-.007(-.025)

  • Structural Equation Model*

    Independent VariableDependent VariableDirect EffectsIndirect EffectsTotal EffectsConfucian ValuesEntrepreneurship-.016.000-.016Organization Performance.068-.005.064Entrepreneur LeadershipEntrepreneurship.562.000.562Organization Performance.305.177.483EthicsEntrepreneurship.246.000.246Organization Performance.141.078.219EntrepreneurshipOrganization Performance.315.000.315

  • *Findings

  • Confucian Values are not necessarily constraining entrepreneurship and organizational performance Direct and indirect effect on entrepreneurship and organizational performanceCurvelinear relationshipLeadership and Ethics Matter!!!!

    *Findings

  • Perception vs. RealityDissecting Confucian ValuesComparative Studies in Asia (expanding this study to China, Japan, and other Asian countriesComparative Studies b/w Asian and non-Asian countriesNext Steps*

  • *Questions..

    Hello, Ill start my presentation. This study is conducted by M. Jae Moon, Gowoonbit Im and Junwoo LeeYonsei University Koreaour research subject is Confucian Values, Entrepreneurship, and Organizational Performance in the Public Sector*presentation order is as follow.*

    Public Administration is static or waning in western countries but emerging and blooming in Asian countries (# of programs, significance and social impact) There are many differences and similarities between western public administration and Asian public administration. What research questions and analytical framework appealing to western PA scholars?

    As argued by many researcher, Bureaucracy Should be bashed? And Confucian values, really constraining factors to entrepreneurship and organizational performance in the public sector? So we starts base on these research background.*So, this is our Research Question.

    We approach to the unique nature of Asian Public Administration.And with Confucian Values, properties of the Asia countries, we focus on some questions related with entrepreneurship, organizational performance and more detailed in Entrepreneur Leadership, ethical climate.

    *Confucianism developed by the Chinese philosopher and educator, Confucius(551 479 BC)Kahn (1979) He though there is unique cultural characteristics won't change easily and that defined as a Collective framework determine one country different from the other countries. So this is connected in unique value in Asia countries .

    Following to Hofstede and Bond(1988), Confucius are comprised of four key principles: the hierarchical relationship among people, the family as a basic unit, Jen, and the emphasis on education. In this value, we particul