Confucian Values, Entrepreneurship, and Organizational Performance in the Public Sector: Do...
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Confucian Values, Entrepreneurship, Confucian Values, Entrepreneurship, and Organizational Performance in and Organizational Performance in
the Public Sector:the Public Sector:Do Confucian Values Facilitate or Do Confucian Values Facilitate or Constrain Entrepreneurship and Constrain Entrepreneurship and
Organizational Performance?Organizational Performance?
M. Jae Moon, Gowoonbit Im and Junwoo Lee
Yonsei UniversityKorea
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Introduction Is Asian Public Administration
Peculiar? Confucian Values in the Public Sector Confucian Values, Leadership, Ethics,
Entrepreneurship, and Organizational Performance
Data and Analysis
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Presentation Outline 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?
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Research Background: Research Background: Why Confucian Values and Why Confucian Values and Entrepreneurship in Asia?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?
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Research QuestionsResearch 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 Literature on Confucian ValuesValues
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• Face-saving - Face saving refers to maintaining one’s public dignity and the avoidance of threats to public image
• Humility - 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 knowledge
• Harmony(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 rank
• Reciprocity - represents a golden rule that governs almost all kinds of interpersonal relationships
Elements of Confucian Elements of Confucian ValuesValues
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Product-based, Behavior-based, Procedural-based (Moon, 1999)
Elements of Entrepreneurship• Innovativeness - 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 gains
• Proactiveness - Aggressive action aimed at accomplishing forward-looking outcomes has been identified as a critical characteristic of public entrepreneurial orientation
EntrepreneurshipEntrepreneurship
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Ethical climate is a key foundation of organizational performance (Moon et.al., 2012)
Leadership always matter!
Entrepreneurial Leadership and Entrepreneurial Leadership and Ethics Ethics
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Theoretical FrameworkTheoretical Framework
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Confucian Values
Entrepreneurship
Ethics
Leadership Organizational Performance
Global Network Research (GRN):Park, Miao, and Moon
Data Collected in Korea between March-May, 2015
Will be Collected in China from May, 2015 Respondents are government officials and
public sector employees in public entities (public corporations and semi-public institutions)
Local government officials in China
Data CollectionData Collection
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Characteristics of SampleCharacteristics of Sample
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Section Category Frequency
percent Section Category Frequency
percent
Gender Male 394 59.4 Organization type
Government agency
302 45.6
Female258 38.9 Executive
agency217 32.7
Total 652 98.3 Public agency 81 12.2
Age 20-29 y/o42 6.3 Quasi-public
agency37 5.6
30-39 y/o 261 39.4 Other 23 3.540-49 y/o 243 36.7 Total 660 99.5
50-59 y/o 106 16.0
Above y/o 1 .2Characteristi
c of work
Policy & planning
126 19.0
Total653 98.5 Business and
Implementation
143 21.6
Employ-ment period
1 month-3 years
109 16.4 Audit and Evaluation
21 3.2
3-5 years62 9.4 Management
and support 187 28.2
5-10 years139 21.0 Data
processing21 3.2
10-15 years106 16.0 Survey and
research49 7.4
More than 15 yr
234 35.3Other
99 14.9
Total 650 98.0 Total 646 97.4
Confucian ValuesConfucian Values
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Face Saving HumilityGroup –
Orientation
HierarchyReciprocit
y
Face-saving 1 .256** .269** .482** . 383**
Humility 256** 1 339** 174** 186**
Grouporientation
186** 339** 1 234** 272**
Hierarchy 482** 174** 234** 1 518**
Reciprocity 383** 186** 272** 518** 1
Regression AnalysesRegression Analyses
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Variables Model 1(Entrepreneurship)
Model 2(Org. Performance)
Confucian Values
Face-saving 2.343** .358
Humility .050 -1.487
Group orientation .154 -.530
Hierarchy -.017 .734
Reciprocity -2.848*** 1.327
Entrepreneurial Leadership Entrepreneurial Leadership 13.074*** 7.077***
Entrepreneurship
Innovativeness 2.574**
Proactiveness 1.293
Risk-taking .923
Ethics Ethics 5.671*** 3.228***
Organization Structure
Autonomy .568 -1.471
Vertical Complex -.716 .168
Horizontal Complex 4.026*** 3.222***
Centralization -2.018** -.849
Red-tape -2.267** -.557
Organization Type Organization Type 3.105** 1.618
Cons. 2.074** 2.221**
Obs. 656 656
R-squared .456 .412
Adj R-squared .445 .397
*p < 0.1, **p < 0.05, ***p < 0.01.
Regression AnalysesRegression Analyses
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Variables Model 1(Entrepreneurship)
Model 2(Square term)
Confucian Values
Face-saving(Square term)
2.343** .190 (Sq)
.209
Humility .050 -.048
Group orientation .154 .016
Hierarchy -.017 -.034
Reciprocity(Square term)
-2.848*** -1.688* (Sq)
1.138
Entrepreneurial Leadership Entrepreneurial Leadership 13.074*** 13.097***
Ethics Ethics 5.671*** 5.656***
Organization Structure
Autonomy .568 .420
Vertical Complex -.716 -.790
Horizontal Complex 4.026*** 4.035***
Centralization -2.018** -1.942*
Red-tape -2.267** -2.334**
Organization Type Organization Type 3.105** 3.158***
Cons. 2.074** 2.074**
Obs. 656 656
R-squared .456 .456
Adj R-squared .445 .445
*p < 0.1, **p < 0.05, ***p < 0.01.
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Structural Equation ModelStructural Equation Model
Regression Estimate
Independent Variable
Confucian Values → Entrepreneurship -.031(-.016)
Entrepreneur Leadership → Entrepreneurship 1.242(.562) ***
Ethics → Entrepreneurship 2.618(.246)***
Confucian Values → Organization Performance .024(.068)
Entrepreneur Leadership → Organization Performance .119(.305) ***
Ethics → Organization Performance .263(.141)**
Intervening Variable
Entrepreneurship → Organization Performance .056(.315)***
Control Variable
Autonomy → 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 ModelStructural Equation Model
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*p < 0.1, **p < 0.05, ***p < 0.01.
Structural Equation ModelStructural Equation Model
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Independent Variable Dependent Variable Direct Effects Indirect Effects Total Effects
Confucian Values
Entrepreneurship -.016 .000 -.016
Organization Performance
.068 -.005 .064
Entrepreneur Leadership
Entrepreneurship .562 .000 .562
Organization Performance
.305 .177 .483
Ethics
Entrepreneurship .246 .000 .246
Organization Performance
.141 .078 .219
EntrepreneurshipOrganization Performance
.315 .000 .315
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FindingsFindings
Confucian Values are not necessarily constraining entrepreneurship and organizational performance
Direct and indirect effect on entrepreneurship and organizational performance
Curvelinear relationship Leadership and Ethics Matter!!!!
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FindingsFindings
Perception vs. Reality Dissecting Confucian Values Comparative Studies in Asia
(expanding this study to China, Japan, and other Asian countries
Comparative Studies b/w Asian and non-Asian countries
Next StepsNext Steps
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Questions…..Questions…..