Understanding corporate culture and business performance from a Confucian perspective

Abstract

PurposeThis paper aims to develop a culturally sensitive model based on the Chinese Confucian philosophy and normative ethics, which emphasizes the wholehearted social responsibility of a Junzi (a noble man). Analogous to the popular marketing concept and strategic marketing orientation concepts, the authors define the Junzi concept as a business philosophy and Junzi orientation as the implementation of this philosophy. It proposes a Junzi orientation has a positive influence on companies' performances.Design/methodology/approachAn 18-item scale comprising five dimensions: (1) Ren – benevolence, humaneness; (2) Yi – appropriateness, righteousness; (3) Li – propriety, harmonious differentiation; (4) Zhi – wisdom, knowledge management; and (5) Xin – integrity, trustworthiness, was developed to measure Junzi orientation. A total of 423 questionnaires were collected from different industries in Hong Kong, and confirmatory factor analyses were conducted.FindingsThe multidimensional behavioral construct of Junzi orientation scale was reliable and valid. The data supported that Junzi orientation has a positive influence on companies' performances.Practical implicationsThe paper suggests that Junzi orientation could enhance a firm's competitive advantage.Originality/valueThis paper develops a culturally sensitive business orientation scale based on Chinese Confucianism and normative ethics.