Understanding corporate culture and business performance from a Confucian perspective

Purpose: This 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/approach: An 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. Findings: The 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 implications: The paper suggests that Junzi orientation could enhance a firm's competitive advantage. Originality/value: This paper develops a culturally sensitive business orientation scale based on Chinese Confucianism and normative ethics.