IDEAS home Printed from https://ideas.repec.org/a/spr/rvmgts/v16y2022i2d10.1007_s11846-021-00452-1.html
   My bibliography  Save this article

The influence of the five cardinal values of confucianism on firm performance

Author

Listed:
  • Huei-Ting Tsai

    (National Cheng-Kung University)

  • Chung-Lin Tsai

    (National Chung Cheng University)

Abstract

This paper investigates the influences of Confucian values on the performance of multinational firms. Building on the five cardinal values of Confucianism, a conceptual model is developed by integrating benevolence, justice, courtesy, knowledge, and integrity. Based on a cross-sectional sample of 160 Taiwanese firms, this study finds the levels of justice and knowledge that positively strengthen the relationship between the degree of internationalization and firm performance. It is also found that the levels of benevolence and integrity significantly strengthen the relationship between networking capability and firm performance. The paper concludes with a discussion of the theoretical and managerial implications.

Suggested Citation

  • Huei-Ting Tsai & Chung-Lin Tsai, 2022. "The influence of the five cardinal values of confucianism on firm performance," Review of Managerial Science, Springer, vol. 16(2), pages 429-458, February.
    • Handle: RePEc:spr:rvmgts:v:16:y:2022:i:2:d:10.1007_s11846-021-00452-1
    DOI: 10.1007/s11846-021-00452-1
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11846-021-00452-1
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s11846-021-00452-1?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Bruce Kogut & Udo Zander, 1992. "Knowledge of the Firm, Combinative Capabilities, and the Replication of Technology," Organization Science, INFORMS, vol. 3(3), pages 383-397, August.
    2. Lenn Gomes & Kannan Ramaswamy, 1999. "An Empirical Examination of the Form of the Relationship Between Multinationality and Performance," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 30(1), pages 173-187, March.
    3. Leonard Dudley & Ulrich Blum, 2001. "Religion and economic growth: was Weber right?," Journal of Evolutionary Economics, Springer, vol. 11(2), pages 207-230.
    4. Ren, Shengce & Eisingerich, Andreas B. & Tsai, Huei-Ting, 2015. "How do marketing, research and development capabilities, and degree of internationalization synergistically affect the innovation performance of small and medium-sized enterprises (SMEs)? A panel data," International Business Review, Elsevier, vol. 24(4), pages 642-651.
    5. Igor Filatotchev & Li‐Qun Wei & Riikka M. Sarala & Penny Dick & John E. Prescott, 2020. "Connecting Eastern and Western Perspectives on Management: Translation of Practices Across Organizations, Institution and Geographies," Journal of Management Studies, Wiley Blackwell, vol. 57(1), pages 1-24, January.
    6. Cam Caldwell & Rolf Dixon & Ryan Atkins & Stefan Dowdell, 2011. "Repentance and Continuous Improvement: Ethical Implications for the Modern Leader," Journal of Business Ethics, Springer, vol. 102(3), pages 473-487, September.
    7. Tiessen, James H., 1997. "Individualism, collectivism, and entrepreneurship: A framework for international comparative research," Journal of Business Venturing, Elsevier, vol. 12(5), pages 367-384, September.
    8. Morck, Randall & Yeung, Bernard, 1991. "Why Investors Value Multinationality," The Journal of Business, University of Chicago Press, vol. 64(2), pages 165-187, April.
    9. John Child & Sek Hong Ng & Christine Wong, 2002. "Psychic Distance and Internationalization: Evidence from Hong Kong Firms," International Studies of Management & Organization, Taylor & Francis Journals, vol. 32(1), pages 36-56, January.
    10. Jiing-Lih Farh & Bor-Shiuan Cheng, 2000. "A Cultural Analysis of Paternalistic Leadership in Chinese Organizations," Palgrave Macmillan Books, in: J. T. Li & Anne S. Tsui & Elizabeth Weldon (ed.), Management and Organizations in the Chinese Context, chapter 4, pages 84-127, Palgrave Macmillan.
    11. Masaaki Kotabe & Srini S Srinivasan & Preet S Aulakh, 2002. "Multinationality and Firm Performance: The Moderating Role of R&D and Marketing Capabilities," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 33(1), pages 79-97, March.
    12. Armstrong, J. Scott & Overton, Terry S., 1977. "Estimating Nonresponse Bias in Mail Surveys," MPRA Paper 81694, University Library of Munich, Germany.
    13. J. Michael Geringer & Paul W. Beamish & Richard C. Dacosta, 1989. "Diversification strategy and internationalization: Implications for mne performance," Strategic Management Journal, Wiley Blackwell, vol. 10(2), pages 109-119, March.
    14. Yves Bozec & Richard Bozec & Mohamed Dia, 2010. "Overall governance, firm value and deviation from one share: one vote principle," International Journal of Managerial Finance, Emerald Group Publishing Limited, vol. 6(4), pages 305-328, September.
    15. Jung, Yojin, 1991. "Multinationality and profitability," Journal of Business Research, Elsevier, vol. 23(2), pages 179-187, September.
    16. Jean, Ruey-Jer “Bryan” & Kim, Daekwan & Cavusgil, Erin, 2020. "Antecedents and outcomes of digital platform risk for international new ventures’ internationalization," Journal of World Business, Elsevier, vol. 55(1).
    17. Robert M Grant, 1987. "Multinationality and Performance among British Manufacturing Companies," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 18(3), pages 79-89, September.
    18. Akbar Zaheer & N. Venkatraman, 1995. "Relational governance as an interorganizational strategy: An empirical test of the role of trust in economic exchange," Strategic Management Journal, Wiley Blackwell, vol. 16(5), pages 373-392.
    19. Gary chan, 2008. "The Relevance and Value of Confucianism in Contemporary Business Ethics," Journal of Business Ethics, Springer, vol. 77(3), pages 347-360, February.
    20. Dennis Hwang & Patricia Golemon & Yan Chen & Teng-Shih Wang & Wen-Shai Hung, 2009. "Guanxi and Business Ethics in Confucian Society Today: An Empirical Case Study in Taiwan," Journal of Business Ethics, Springer, vol. 89(2), pages 235-250, October.
    21. Shiying Shi & Heap-Yih Chong & Lihong Liu & Xiaosu Ye, 2016. "Examining the Interrelationship among Critical Success Factors of Public Private Partnership Infrastructure Projects," Sustainability, MDPI, vol. 8(12), pages 1-20, December.
    22. Zhong Qin & Xin Deng, 2016. "Government and family Guanxi in Chinese private firms: perceptions and preference," Review of Managerial Science, Springer, vol. 10(1), pages 35-60, January.
    23. Homin Chen & Tain-Jy Chen, 1998. "Network Linkages and Location Choice in Foreign Direct Investment," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 29(3), pages 445-467, September.
    24. Peter Woods & David Lamond, 2011. "What Would Confucius Do? – Confucian Ethics and Self-Regulation in Management," Journal of Business Ethics, Springer, vol. 102(4), pages 669-683, September.
    25. repec:fth:michin:282 is not listed on IDEAS
    26. Quey-Jen Yeh & Xiaojun Xu, 2010. "The Effect of Confucian Work Ethics on Learning About Science and Technology Knowledge and Morality," Journal of Business Ethics, Springer, vol. 95(1), pages 111-128, August.
    27. Cullen, John B. & Johnson, Jean L. & Sakano, Tomoaki, 2000. "Success through commitment and trust: the soft side of strategic alliance management," Journal of World Business, Elsevier, vol. 35(3), pages 223-240.
    28. Joseph H. Astrachan & Claudia Binz Astrachan & Giovanna Campopiano & Massimo Baù, 2020. "Values, Spirituality and Religion: Family Business and the Roots of Sustainable Ethical Behavior," Journal of Business Ethics, Springer, vol. 163(4), pages 637-645, May.
    29. Mathews, John A., 2002. "Dragon Multinational: A New Model for Global Growth," OUP Catalogue, Oxford University Press, number 9780195121469.
    30. Dimitratos, Pavlos & Plakoyiannaki, Emmanuella & Pitsoulaki, Antigoni & Tüselmann, Heinz Josef, 2010. "The global smaller firm in international entrepreneurship," International Business Review, Elsevier, vol. 19(6), pages 589-606, December.
    31. Alexander Brem & Pierre Wolfram, 2017. "Organisation of new product development in Asia and Europe: results from Western multinationals R&D sites in Germany, India, and China," Review of Managerial Science, Springer, vol. 11(1), pages 159-190, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Henrique Faverzani Drago & Gilnei Luiz Moura & Luciana Santos Costa Vieira Silva & Claudimar Pereira Veiga & Fabíola Kaczam & Luciana Peixoto Santa Rita & Wesley Vieira Silva, 2023. "Reviewing the relationship between organizational performance, dynamic capabilities and strategic behavior," SN Business & Economics, Springer, vol. 3(1), pages 1-22, January.
    2. Angus Robson, 2022. "Aquinas’s Principle of Misericordia in Corporations: Implications for Workers and other Stakeholders," Humanistic Management Journal, Springer, vol. 7(2), pages 233-257, October.
    3. Min Huang & Xiaobo Li & Jun Xia & Mengyao Li, 2024. "Does Confucianism Prompt Firms to Participate in Poverty Alleviation Campaigns?," Journal of Business Ethics, Springer, vol. 189(4), pages 743-762, February.
    4. Jen-Shou Yang & Li-Ching Tsai, 2023. "The moderating effects of trustor characteristics and the cost of being trusted on the relationship between felt trust and OCB intention," Review of Managerial Science, Springer, vol. 17(7), pages 2417-2441, October.
    5. Xu, Xixiong & Duan, Lingling, 2023. "Confucianism and employee stock ownership plans: Evidence from Chinese listed firms," Economic Analysis and Policy, Elsevier, vol. 78(C), pages 859-872.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Quyen T. K. Nguyen, 2017. "Multinationality and Performance Literature: A Critical Review and Future Research Agenda," Management International Review, Springer, vol. 57(3), pages 311-347, June.
    2. Xiao, Simon Shufeng & Jeong, Insik & Moon, Jon Jungbien & Chung, Chris Changwha & Chung, Jaiho, 2013. "Internationalization and Performance of Firms in China: Moderating Effects of Governance Structure and the Degree of Centralized Control," Journal of International Management, Elsevier, vol. 19(2), pages 118-137.
    3. Yong Yang & Nigel Driffield, 2012. "Multinationality-Performance Relationship," Management International Review, Springer, vol. 52(1), pages 23-47, February.
    4. Buigues, Pierre-André & Lacoste, Denis & Lavigne, Stéphanie, 2015. "When over internationalized companies reduce their international footprint," International Business Review, Elsevier, vol. 24(6), pages 1039-1047.
    5. Joonho Shin & Xavier Mendoza & Changbum Choi, 2022. "Do internationalizing business group affiliates perform better after promarket reforms? Evidence from Korean SMEs," Asia Pacific Journal of Management, Springer, vol. 39(2), pages 805-841, June.
    6. Lei Li, 2008. "Multinationality and technical efficiency: A neglected perspective," Management International Review, Springer, vol. 48(1), pages 39-64, February.
    7. Tsai, Huei-Ting, 2014. "Moderators on international diversification of advanced emerging market firms," Journal of Business Research, Elsevier, vol. 67(6), pages 1243-1248.
    8. Andreas Bausch & Mario Krist, 2007. "The effect of context-related moderators on the internationalization-performance relationship: Evidence from meta-analysis," Management International Review, Springer, vol. 47(3), pages 319-347, June.
    9. Contractor, Farok J. & Kumar, Vikas & Kundu, Sumit K., 2007. "Nature of the relationship between international expansion and performance: The case of emerging market firms," Journal of World Business, Elsevier, vol. 42(4), pages 401-417, December.
    10. Assaf, A. George & Josiassen, Alexander & Ratchford, Brian T. & Barros, Carlos Pestana, 2012. "Internationalization and Performance of Retail Firms: A Bayesian Dynamic Model," Journal of Retailing, Elsevier, vol. 88(2), pages 191-205.
    11. Nguyen, Quyen T.K. & Kim, Sylvia, 2020. "The multinationality and performance relationship: Revisiting the literature and exploring the implications," International Business Review, Elsevier, vol. 29(2).
    12. Verbeke, Alain & Brugman, Paul, 2009. "Triple-testing the quality of multinationality-performance research: An internalization theory perspective," International Business Review, Elsevier, vol. 18(3), pages 265-275, June.
    13. Heyder, Matthias & Makus, Christian & Theuvsen, Ludwig, 2011. "Internationalization and Firm Performance in Agribusiness: Empirical Evidence from European Cooperatives," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 2(1), pages 1-17, September.
    14. Han, I & Liang, Hsin-Yu & Chan, Kam C., 2016. "Locational concentration and institutional diversification: Evidence from foreign direct investments in the banking industry," The North American Journal of Economics and Finance, Elsevier, vol. 38(C), pages 185-199.
    15. Lin, Yini & Wu, Lei-Yu, 2014. "Exploring the role of dynamic capabilities in firm performance under the resource-based view framework," Journal of Business Research, Elsevier, vol. 67(3), pages 407-413.
    16. Rodney D. Boehme & Anthony D. May, 2016. "Multinational Corporations and Stock Price Crash Risk," International Journal of Finance & Banking Studies, Center for the Strategic Studies in Business and Finance, vol. 5(4), pages 39-63, July.
    17. Shih-Yung Wei & Li-Wei Lin & Su-Mei Gan, 2019. "The Influence of Internationalization Degree on the Performance of Industry-Specific Companies: A Case Study of Taiwan (2001-2017)," International Journal of Economics and Financial Issues, Econjournals, vol. 9(4), pages 212-227.
    18. CASTANER, Xavier & GENC, Mehmet, 2004. "Country Institutional Differences and Multinational Advantage in Banking," HEC Research Papers Series 792, HEC Paris.
    19. Zhang, Yufeng & Yang, Zhibo & Zhang, Tao, 2018. "Strategic resource decisions to enhance the performance of global engineering services," International Business Review, Elsevier, vol. 27(3), pages 678-700.
    20. Balasubramanian Elango & S. Prakash Sethi, 2007. "An exploration of the relationship between country of origin (COE) and the internationalization-performance paradigm," Management International Review, Springer, vol. 47(3), pages 369-392, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:rvmgts:v:16:y:2022:i:2:d:10.1007_s11846-021-00452-1. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.