1. 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 Lee Yonsei University Korea 1

2.  Introduction  Is Asian Public Administration Peculiar?  Confucian Values in the Public Sector  Confucian Values, Leadership, Ethics, Entrepreneurship, and Organizational Performance  Data and Analysis 2 Presentation Outline

3.  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? 3 Research Background: Why Confucian Values and Entrepreneurship in Asia?

4.  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? 4 Research Questions

5.  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 5

6. 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 Values 6

7.  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 Entrepreneurship 7

8.  Ethical climate is a key foundation of organizational performance (Moon et.al., 2012)  Leadership always matter! Entrepreneurial Leadership and Ethics 8

9. Theoretical Framework 9 Confucian Values Entrepreneurship Ethics Leadership Organizational Performance

10.  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 Collection 10

11. Characteristics of Sample 11 SectionCategoryFrequenc y percentSectionCategoryFrequen cy percent Gender Male 39459.4 Organization type Government agency 30245.6 Female 25838.9 Executive agency 21732.7 Total 65298.3 Public agency 8112.2 Age 20-29 y/o 426.3 Quasi-public agency 375.6 30-39 y/o 26139.4 Other 233.5 40-49 y/o 24336.7 Total 66099.5 50-59 y/o 10616.0 Above y/o 1.2 Characteristic of work Policy & planning 12619.0 Total 65398.5 Business and Implementation 14321.6 Employ- ment period 1 month-3 years 10916.4 Audit and Evaluation 213.2 3-5 years 629.4 Management and support 18728.2 5-10 years 13921.0 Data processing 213.2 10-15 years 10616.0 Survey and research 497.4 More than 15 yr 23435.3 Other 9914.9 Total 65098.0 Total 64697.4

12. Confucian Values 12 Face SavingHumility Group – Orientation HierarchyReciprocity Face-saving1.256 **.269 **.482 **. 383 ** Humility256 ** 1339 ** 174 ** 186 ** Group orientation 186 ** 339 ** 1234 ** 272 ** Hierarchy482 ** 174 ** 234 ** 1518 ** Reciprocity383 ** 186 ** 272 ** 518 ** 1

13. Regression Analyses 13 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 13.074*** 7.077*** Entrepreneurship Innovativeness 2.574** Proactiveness 1.293 Risk-taking.923 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 3.105** 1.618 Cons. 2.074**2.221** Obs. 656 R-squared.456.412 Adj R-squared.445.397 *p < 0.1, **p < 0.05, ***p < 0.01.

14. Regression Analyses 14 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 13.074*** 13.097*** 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 3.105** 3.158*** Cons. 2.074** Obs. 656 R-squared.456 Adj R-squared.445 *p < 0.1, **p < 0.05, ***p < 0.01.

15. 15 Structural Equation Model

16. RegressionEstimate Independent Variable Confucian 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 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 Model 16 *p < 0.1, **p < 0.05, ***p < 0.01.

17. Structural Equation Model 17 Independent VariableDependent VariableDirect EffectsIndirect EffectsTotal 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

18. 18 Findings

19.  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!!!! 19 Findings

20.  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 Steps 20

21. 21 Questions…..