The Effect of Confucian Work Ethics on Learning About Science and Technology

Knowledge and Morality

Author(s): Quey-Jen Yeh and Xiaojun Xu
Source: Journal of Business Ethics , August 2010, Vol. 95, No. 1 (August 2010), pp. 111-
128
Published by: Springer

Stable URL: https://www.jstor.org/stable/40784942

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Journal of Business Ethics (2010) 95:111-128 © Springer 2009
DOI 10.1007/sl0551-009-0352-l

The Effect of Confucian Work Ethics

on Learning About Science Quey-Jen Yeh

and Technology Knowledge and Morality Xiaojun Xu

ABSTRACT. While Chinese societies often appear cen- Introduction

tralized and traditional, presumably impeding technology
and innovation, these values may simply reflect the nega- Organizational literature widely appraises the effi
tive-leaning poles of Confucianism. This study proposes a ciency of Chinese-managed corporations in applying
Confucian work ethic dimension that stresses justified
modern management knowledge. Owing to the
tradition. In combination with Western innovative cul-
unique Chinese socioeconomic factors, Chinese
tures, this Chinese style might facilitate learning about
companies use management approaches differen
knowledge and morality in an interaction seemingly
unique to the Chinese science and technology sector.from those adopted in the West, usually focusing on
Specifically, contrary to the Western style that toleratesfamily, and preferences for tradition, such that th
conflict to achieve harmony, Confucian work ethics - anmanagement culture displays hierarchical authori-
Eastern way - prefer to respect hierarchy to attain har-tarianism. Yet, these characteristics simply reflex the
mony. Samples from the multinational corporations in ideas on the negative pole of Confucian dynamics
(Hofstede and Bond, 1988), which does not imply
Shanghai and privately owned enterprises in Hsinchu of
Taiwan represent two levels of Westernization. Thethat Chinese cultures offer no advantages for modern
findings reveal that the two types of cultures almost equallybusiness management.
influence the facilitation of learning about morality, Chinese societies are rooted in Confucianism,
whereas the Western way more effectively teaches about
which is essentially obedient, noncompetitive, har-
professional knowledge and the Eastern way more effec-
monious, and tolerant. With the rapid development
tively teaches general knowledge. In addition, though the
of global businesses, China, overseas Chinese (e.g.,
samples from both locations enjoy positive advantages from
their combined cultures, Shanghai appears more West-
Taiwan), and Southeast Asia have become appealing
ernized than Taiwan, and Taiwan benefits more from international markets (Wah, 2001), prompting ever
Confucian work ethics and a higher level of qualitygreater changes in cross-cultural business cultures
between Asian countries and their culturally differ-
learning, particularly with regard to morality. This result
ent
may suggest the benefits of Confucius' ideas, if they are not Western partners (Fan and Zigang, 2004). On
used excessively to emphasize the negative aspects. the one hand, industrialization may bring the per-
sonal value systems in Chinese businesses closer to
KEY WORDS: Confucian work ethics, Chinese S&T Western innovative styles (Hempel and Chang,
personnel, innovative cultures, professional quality, moral- 2002). On the other hand, Chinese-managed firms
ity, knowledge learning
tend to adopt regional or Asian-style management
approaches, because traditional relationship-based
ABBREVIATIONS: S&T: Science and technology;
management concepts often do not fare well in fast-
MNCs: Multinational corporations; POEs: Privately
owned enterprises
changing global arenas (Wright et al, 2000).

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112 Quey-Jen Yeh and Xiaojun Xu

Regardless of the various causes of success among(POEs) started by local Taiwanese. A

MNCs stimulated China's adoption
different regions though, Chinese culture may offer
several advantages. For example, despite assessments practices, the data from these two sam
two levels of Westernization and, t
of Guanxi, a type of social capital useful for business
success in China, as "bribery," actually has very little better insights into the benefits of old a
to do with ethical reasoning (Su et al., 2003). on quality learning, contingent on We
Joint enterprises between Chinese and foreign
firms that employ advanced technologies also have
led to the founding of thousands of technology- Confucian values - the negative
based enterprises in the past 20 years (Ahlstrom andand positive implications
Bruton, 2002). In that time, China has established 62
science parks, and its science and technology (S&T)Although divided geographically and po
personnel have increased more than 60% in just the China and Taiwan are culturally roote
past decade, reaching 5.00 million in 2008 (The cianism. According to Wang et al. (200
Ministry of Science and Technology of the PRC, ideas consist of two prime structures: fir
2009). The combination of traditional philosophy
ture of five hierarchical relations (em
and recent socialist developments have produced afather- son, husband- wife, elder- young
unique form of Chinese organizational behavior
and friend- friend) that defines the socia
(Chen and Godkin, 2001), influencing the values of tionships, and mutual obligations of in
thousands of Chinese S&T personnel and hence the ond, the structure of five virtues
competitive advantage of Chinese enterprises. Like righteousness, propriety, wisdom, and
its counterparts, China searches for ways to upgrade ness) that nurtures people's inner char
the quality of its S&T personnel, including the social ther their ethical maturation. Com
system that can cultivate S&T knowledge and generate five key aspects of Confucian
morality (Bin, 1999). Perhaps, due to the greater et al., 2005): (1) hierarchy and harmon
emphasis of technological outcomes though, existing whether each person behaves in accord
organizational theories seldom investigate the im-or her predetermined social rank or st
pacts of integrating old Chinese values with new orientation ensures individuals are pa
Western styles on S&T quality. The aim of this tionship network, in which individual
article is to explore whether both Western innova- second to those of the group; (3) Guan
tive values and Confucian work ethics, such as connections, relationships, or network
reverence and status hierarchy, are useful in facili- favors in personal relations (e.g., Luo,
tating learning about S&T knowledge and morality 2003); (4) mianzi (giving face) shows res
in Chinese high-tech sector. status and reputation in society, such tha
This study begins by developing measures for to others may be more important tha
Western innovative cultures, Confucian work ethics, one's own (Buttery and Leung, 1998);
and learning about professional qualities. The quality orientation tends to be more past- tha
learning scale comprises both work knowledge and future-oriented (Alder, 2002), which
morality standard. In order to locate appropriate nese culture is inclined toward tradition but also is
subjects, two samples come from Shanghai and known for diligence and treasures the time allotted for
Hsinchu Science Park in Taiwan; both locations life. In Chinese history, the social force of the clan
have experienced an influx of Western management limited and imposed behaviors, easily controlled by
influences and represent the spatial concentration of Chinese rulers. In modern times, Confucian concepts
S&T resources across the Taiwan Strait. In addition, apply in the context of a "work unit" focused on
Shanghai is the largest R&D and technology center, group solidarity (Wang et al., 2005).
with the most investments from Western multi- These distinctive values create incompatibility
national corporations (MNCs) in China (Sun and
between Chinese organizations and Western man-
Wen, 2007), whereas high-tech companies in agement practices. For instance, in contrast with
Hsinchu are mostly privately owned enterprises
Western project-based team concepts that encourage

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 Effect of Confucian Work Ethics 113

conflict tolerance and nsk-taking, the Chinese group (Hofstede and Bond, 1988). Using West
Eastern perspectives and samples from 20
orientation emphasizes sacrificing one's own interests
for group commonality, which discourages conflict- worldwide, Franke et al. (1991) show that
ing voices among group members (Wang et al., values, particularly those positioned on th
2005). The high respect for social hierarchy and pole of Confucian dynamism, represent th
positional authority that conflict with Western par- determinants of human organization and b
ticipative styles and idea sharing, dictating instead a and, thus, the relative success of Eastern A
high degree of top-down control and centralized omies. More recent reports approve the use o
decision making, may cause employee risk aversion persuasion, appraisal, and collaboration by
(Redding, 1990; Chen et al., 2000). These distinc- business managers in their efforts to build
tions, however, do not imply the superiority of sonal relationships (Fu et al., 2004), includ
Western values. Rather, they reflect a unique Chinese tuting outside professionals as chief executiv
way of doing business in terms of social and rela- instead of simply passing companies onto
tionship hierarchies, that is, Guanxi networks (Su and (Ng, 2004). Research suggests too that Gu
Littlefield, 2001). When allying with right people, be more than simply a relationship betwe
Guanxi connects people to form resource coalitions, and reflect a task management appr
which is like a "stock" that can be put away in times of emphasizes personal behavior and human
abundance and plenty and used in times of need and ships (Yau and Powell, 2004), and high-tech
necessity (Yeung and Tung, 1996). Through Guanxi tend to shift toward Western management
networks, Chinese businesses share resources with adopted by innovative organizations (He
their partners and obtain assistance that otherwise may Chang, 2002).
not be available (Tsang, 1998). As reform in China continues, the values and
Confucian ideas or Guanxi orientation appears styles of the Chinese management system are mov-
very little to do with ethical manipulation (Su et al., ing in more diversified directions in terms of not
2003). However, due to the loose legal environments only socio-modernization but also unique forms of
in Chinese societies, Chinese cultures, in embracing Chinese organizational behavior. Given Table I,
Guanxi, mianzi, paternalism, and power centraliza- while the summarization cannot fully reflect Con-
tion, may impede business initiatives and create nat- fucian ideas, the influences given by both positive
and negative implications of Confucian values on
ural resistances to Western practices (e.g., Chen et al.,
2000; Claver et al, 1998). For instance, Chinese Chinese businesses continue.
businesses have been found turning to the regulation
of Guanxi network and knowledge of mianzi in a bad
way (Buttery and Leung, 1998; Wang et al, 2005). Learning about S&T professional quality -
Several recent studies even conceptualize Guanxi as a the impact of Eastern and Western values
substitute to formal institutions (e.g., Xin and Pearce,
1996), a social dynamic that promotes business ethical Chinese S&T sector
abuse (e.g., Dunfee and Warren, 2001), or synonyms
with bribery (Steidlmeier, 1999) and bureaucratic Economic reforms in China began in the early 1980s.
corruption (Lovett et al., 1999). Consequently, Since then, China's foreign trade has expanded
Guanxi almost become the primary issue in the tremendously, at a growth rate of approximately 15%
convergence of Chinese and Western management per year, with its share in world trade rising from less
values (e.g., Wangetal., 2005; Xin and Pearce, 1996). than 1% to approximately 5% (Gaulier et al, 2004).
Fortunately, these values simply reflect choices on China's reform is no longer limited to labor- and
the negative pole of the Confucian dynamics capital-intensive industries but has expanded to
dimension, which also features ideas that reflect a include high-tech initiatives to ensure continued
dynamic, future-oriented mentality (Hofstede and economic achievement, such as science parks, uni-
Bond, 1988). Concepts such as thrift, perseverance, versity-industry collaborations, and capitalization of
legitimacy of hierarchy, and sense of shame fall on the university intellectual property (Wen and Kobayashi,
positive pole of the Confucian dynamics dimension 2002). Although China has increased the quantity of

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 114 Quey-Jen Yeh and Xiaojun Xu

TABLE I

The positive and negative implications of Confucian ideas

The five aspects Definition Positive implication Negative implication

(1) Hierarchy and harmony Behaves in accordance Respect hierarchy and Paternalism; power
with predetermined authority for harmony distance; centralized
social status decision making
(2) Group orientation Individuals are parts of a Individual interests Risk avoidance;
relationship network come second to those of discourage conflicting
the group voices; disliking idea
sharing
(3) Past orientation More past- than près- Chinese value is known Less innovative; conser-
ent- or future-oriented for its inclination to- vative; noncompetitive;
ward tradition, thrift, overemphasize hierarchy
diligence, respect for and seniority
the elder, and treasures
the time allotted for life

(4) Guanxi network Connections or net- Connect people to de- A substitute to formal
working to secure velop interpersonal institutions; synonymous
favors in personal rela- networks to share scare with bureaucratic cor-
tions resources and cope with ruption or entering
uncertainty through the back door
(5) Mianzi (giving face) Shows respect for social Exchange of favors; save Businesses ar
status and reputation in face for help when in based on "mianzi/' not
society need mutual benefits

its S&T resources, its low innovative capability and approach (Hempel and Chang, 2
poor technology transfer rate hamper its high-tech management practices remains in
potential, leaving its S&T plans underdeveloped and limited (Farh, 1995). Hem
(Watkins-Mathys and Foster, 2006). China's lower conclude that Taiwanese privat
wages, compared with its Asian counterparts, follow the Chinese family busin
including Taiwan, also represent a weakness rather and autocratic, with centralize
than a strength in terms of technology productivity low trust in subordinates. Yet, if
(Kwan, 2002). true, how have private tech
Taiwan, with a population of 23 million, is the Taiwan reconciled their traditional Chinese business

largest overseas Chinese community. The isolationist
policy of China before 1970s and the rapid growth of
the Taiwanese economy in the 1970s-1990s put Tai-
wan a step ahead of mainland China in its S&T
development. The introduction of labor- and capital-
intensive heavy industries in the 1970s and high-tech
science parks in the 1980s successfully drove Taiwan's
values with technology and innovation? Confucianism
also has spread to many other Asian countries (Wang
et al., 2005). Thus, as the economic and technological
developments of China continue, it becomes critical to
study such changes more closely, as well as to examine
how Western innovation styles might apply in other
Chinese societies.

economy to remarkable growth. For example, it pro-

vides one-fifth of the world's computer hardware and
is the world's largest supplier of many computer
components and peripherals (Hsu and Chiang, 2001).
Despite Taiwan's positioning, a decade ahead of China
in its economic and technological development, with a
high-tech sector moving toward a Western, innovative
S&T professional quality standards: knowledge
and morality
Western innovative cultures reflect a learning ori-
entation that facilitates and promotes inventiveness,

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 Effect of Confucian Work Ethics 115

combined with the pursuit of prospective knowl-

of the difficulty that Chinese workers have in sep-
edge (Miron et al., 2004). Currently, arating these
professionalnewfrom personal conflict. It also
cultures, together with traditional may Chinese values,in perspective, such that in
relate to differences
are jointly reshaping the Chinese high-tech the East, harmonysector implies "hierarchy and har-
into an environment more suitable for innovation mony," derived from the five cardinal role relations
and technology development (Hempel and Chang, and obligations of Confucianism. In these relations,
2002). Though technology has become centralmost to pairs reflect a dominant-subservient relation-
knowledge, its driving force depends behind the ship (Su et al., 2003), with aspirations to a conflict-
development of social systems that cultivates it; free,
in group-oriented social system (Buttery and
turn, knowledge learning and accumulation mustLeung,be 1998) that does not encourage people in
subservient positions to voice objections. In the
able to effectively influence the professional quality
West, however, harmony implies "tolerance for
of individual employees (Bin, 1999). Bin, therefore,
harmony," so though Western employees are
posits that Chinese S&T personnel require three
encouraged to view their organizations as teams and
levels of quality standards: general knowledge, pro-
fessional technique, and morality. Knowledge is theteamwork as a necessity, their personal relationships
with team members can be easy and informal, and
most basic quality, but it is also less important than
technique, and technique is less important than they maintain a considerable degree of autonomy
and freedom that enables them to voice different
morality. Franke et al. 's (1991) international culture
performance survey also supports the importanceopinions
of (e.g., Claver et al., 1998). Although both
moral discipline. seek harmony, the two styles are almost opposite.
In order to produce observed cultural variances,Yet, contradictory values seemingly have fostered
Chinese
according to Ardichvili and Kuchinke (2002), we must technological and economic successes.
Wang et al. (2005) posit that management practices
incorporate culture in our investigation as a major
in China might be understood best by examining
influence and account for its effect on the phenomena
Confucian values. The explanation, therefore, may
under investigation. Although the importance of the
appear in studies that tackle the poorly defined
three qualities is apparent, little research in engineering
or technology management examines the extentrelationship
to between technology and innovation and
which technical professionals adopt them at work.sociocultural values in Chinese business. And, to
obtain the benefits of Chinese cultures for technology
Most quality studies in engineering (e.g., Harnesk,
2004) focus on technical or production qualities,and innovation, the values studied may need to inte-
and when they consider behavioral issues, the
grate Western innovative cultures. This study proposes
emphasis remains on accomplishing assigned tasks and defines such a Chinese dimension "Confucian

(e.g., Delgado, 1992) rather than the human side. Thiswork ethics," which orders relationships between
dearth of research may be due to the difficultyboss-subordinate
of and colleague-colleague at work, as
achieving these qualities in practice, whereas the
implied by Confucius's dyadic role relations.
emphasis on technological knowledge provides for
Hypothesis 1: Both Western innovative cultures and
easy evaluations. Thus, current S&T researchers and
Confucian work ethics exit in Chinese S&T
practitioners continue to ignore social issues.
sectors, affecting positively on their S&T per-
sonnel's learning about professional quality.

Hypotheses Franke et al.'s (1991) survey reveals significant

In identifying the adaptation of innovative styles in
Taiwan's high-tech industry, Hempel and Chang
(2002) indicate that the convergence remains
uniquely Chinese in many characteristics, particu-
national differences due to regional development
and connections to Western management practices.
For example, many people in Hong Kong and
Taiwan have been educated and worked overseas,
but Taiwanese returnees tend to start their own

larly the importance given to harmonious working businesses, creating companies in Taiwan mostly
relations. This persistence may be a problem in terms privately owned, whereas Hong Kong returnees are

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 116 Quey-Jen Yeh and Xiaojun Xu

more likely to work for MNCs (Hempel and Chang, conforms to supervisory rules, respect
2002). Similar to Hong Kong, most enterprises in ues the ethics of seniority, and values
Shanghai are Western MNCs. Therefore, firm tionships. Apparently, these proxies di
ownership constitutes a significant regional devel- Western innovative dimensions, inc
opment contingency variable - that is, it exhibits omy, informal climates, risk-takin
significant differences with regard to how business competence instead of seniority, in a c
activities relate to performance in different circum-
stances (Hambrick and Lei, 1985). Therefore, Professional quality learning
This measure relates to the facilitation
Hypothesis 2: A greater perception of cultural values
tional cultures in employees' learning a
should result in a greater perception of organiza-
standards, work skills, and knowle
tional facilitation for learning about professional
Appendix shows, it consists of 15 i
quality, and this influence is moderated by from existing morality scales (Victor
MNC/POE ownership.
1988) and task skill profiles (Delgado,
of the items to assess morality include
immoral behaviors, even when there a
down rules in the firm" and "Bear in mind the best
Research procedure
for others, not your personal interests." Work skills
Measurements and knowledge refer to abilities with computers,
data searches, information, professional know-how,
Innovative cultures and knowledge beyond work (see the Appendix).
Organizational values may drive the innovative
Questionnaire design procedure
behaviors of employees. According to Miron et al.
(2004) and Hempel and Chang (2002), autonomy, As the two Chinese languages are dissimilar in
risk-taking, tolerance for mistakes, allowance of dif- writing and in meaning in certain ways, the ques-
ferent voices, decentralized structure, value compe- tionnaire was first designed in complicated Chinese
tence instead of seniority, and low bureaucracy or (for Taiwanese sample) based on the English litera-
informal climates are the most prevalent characteris- ture and measurements (see the Appendix), and then
tics of innovation cultures. Innovative performance translated into simplified Chinese (for Shanghai
outcomes also should be more likely when innovative sample). Back-translation technique was applied to
behavior is rewarded (West, 2002). This measure- insure the correctness in the two-stage translations.
ment scale, as shown in the Appendix, consists of 15 Each questionnaire contains a statement that explains
items. the general purpose of the research, the voluntary
nature of participation, and the confidentiality of all
responses. All the measurement scales used seven-
Confucian work ethics point Likert-type scales, ranging from 1 "strongly
This measure pertains to the prevalent ordering disagree" to 7 "strongly agree."
relationships by status and observing this order in a
Chinese work environment (Hofstede and Bond,
1988). That is, our purpose herein is not to reflect all Sample
the aspects of Confucianism, but instead to focus on
the first "Hierarchy and Harmony" dimension given China defines S&T personnel as professionals who
in Table I, because this dimension reflects social have been educated in higher education institutes
norms between each pair of social roles (Su et al, and worked in science- or technology-related jobs,
2003), guiding further the dyadic role relations including managing technical employees (The
Ministry of Science and Technology of the PRC,
between boss- subordinate and colleague- colleague
to form Guanxi and group orientation in one's 2009). Questionnaires, therefore, were distributed to
working environment. The measure consists of four S&T personnel employed in high-tech organizations
items (see the Appendix), indicating respectively in Taiwan's Hsinchu Science Park and high-tech

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 Effect of Confucian Work Ethics 117

TABLE
firms around the Shanghai area in China. Although II

selection of the participating organizations could

Sample profiles between the two locations (Shangha
not be random, participants come from andvarious
Taiwan's Hsinchu Science Park)
S&T sectors, including R&D, semiconductors,
computers, electronics, telecommunications, preci- Shanghai Taiwan
sion equipment, biotechnology, and information (n = 211) (n = 206)
services. Potential respondents were approached
Gender
through the intercession of human resource managers
Male 69 60
or department managers, and the questionnaires were
Female 142 146
delivered through each organization's internal mail
Age level***
system. <30 114 73
A total of 1000 questionnaires were equally 30-35 79 76
distributed to the two locations. The completed 36-39 14 37
questionnaires were either returned through the 40-49 4 17

internal mail system of the participating organiza- >50 0 3

tions or mailed directly to the authors using a Education level

postage-paid envelope included with the question- High school 6 3

naire. A total of 339 (67.8%) questionnaires in Junior college 16 23
Bachelor's 105 118
Shanghai and 356 (71.2%) in Taiwan were returned,
Master's 84 61
but each group included responses from non-S&T
Ph.D. 0 1
personnel, such as general sales, human resources, or
Job title***
finance personnel. After removing these and other Administrator 108 47
invalid questionnaires, a total of 417 questionnaires, R&D engineers 61 92
206 from Taiwan and 211 from Shanghai, remained Other engineers 27 33
for the final analysis. Others 15 34
Table II illustrates the sample profiles for the two Professional tenure
locations. A little more than one-third (35.4%) of the <1 years 22 15
Taiwanese respondents are younger than 30 years of 1-3 years 43 41
age, whereas more than half (54%) represent this age 3-5 years 33 32
group in Shanghai. In addition, 27.7% in Taiwan and 5-10 years 72 70
only 8.5% in Shanghai were older than 40 years. 10-15 years 33 34
15-20 years 8 8
These age data suggest that the Shanghai sample is
> 20 years 0 6
approximately 5 years younger than the Taiwanese
Current job tenure
sample. In terms of job titles and positions, the < 1 years 43 50
Taiwanese respondents include one-quarter admin- 1-3 years 98 90
istrators; 80% of these respondents indicate they are 3-5 years 50 45
"non-managers." Approximately half of the respon- 5-10 years 19 18
dents from Shanghai are administrators, and only 10-15 years 1 0
57.8% indicate they are non-managers. 15-20 years 0 2
Table II also shows significant differences between > 20 years 0 1
the two locations in terms of firm characteristics, such Managerial position le
as size and ownership. On average, respondents in Non-manager 122 165
Low level 38 26
Shanghai, though younger, have been at their current
Middle level 46 9
jobs longer and attained higher positions. Despite
High level 5 6
similarities in gender, education, and professional Industrial sector
tenure, the Shanghai sample seems to have gained Inf. /Telecom. 103 77
higher management levels and lower degrees of job Semic./Elec. 42 68
mobility across different organizations. This finding Precise/Bio. 31 28
may result from firm size and ownership contingency

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 118 Quey-Jen Yeh and Xiaojun Xu

TABLE II In order to examine the influences of Western

continued innovative cultures together with Confucian work
ethics on employees' learning about professional
Shanghai Taiwan qualities, the first step involves analyzing how the
(n = 211) (n = 206) two cultural constructs relate to MNC (or POE)
and other firm attributes. A MANCOVA compares
R&D 5 12
the effects with and without Confucian work ethics
Others 30 21
in the cultural construct. Hierarchical multiple
Firm ownership***
State-owned 32 3
regression then explores how innovative cultures
POEs 25a 189 and Confucian work ethics influence learning
MNCs 154 14 about professional qualities, in which state-owned
Firm size (# enterprises are removed to avoid data bias because
empl.)***
<300 65 87 there are only three firms of this type in Taiwan's
300-1000 32 66 sample.
1000-6000 35 27
>6000 79 26

Findings
***Chi-square difference
significant at 0.001 level.
Table III displays the results
aTaiwanese-owned of the factor analysis of
private fir
innovative cultures and Confucian work ethics for
as private firms in China.
respondents in the two locations. Both analyses pro-
variables. Specifically,
vide a consistent six-factor solution from the separate a
(189) of thedata sets of the two locations. On the basis of the
Taiwanese s
POEs, whereas 73.0%
contents of the measurements, the six factors are
sample were
named risk-taking,employe
valuing (professional) compe-
MNCs, tence, tolerance of
which conflict, Confucian work ethics, ad
usually
and modern
autonomy, managemen
and allowance for mistakes. Together, the
provide factors account forjob
better 72.1 and 71.5% of the common
opport
firms, in variance in the two locations. Theof
support reliabilities ofthe
the r
has 66.2% six(73 vs.
factors are all greater 6.8%
than 0.70, in support of the
than Taiwan. internal consistency and reliability of the corporate
cultural construct for both samples.
Table IV displays the results of the factor analysis
Data analysis regarding learning about professional qualities. Using
the separate data sets for the two locations, a con-
The analysis begins with a factor analysis, using sistent two-factor solution emerges for skills and
Varimax rotation, to derive fewer factors for the four knowledge learning and morality learning. The
measurements, namely, innovative cultures, Confu- contents of the measurements in the Appendix are
cian work ethics, and the two levels of professional named general and professional knowledge in the
quality learning. The analyses are conducted sepa- skills and knowledge scale, and social and profes-
rately for the two locations, to compare whether the sional morality in the morality scale. The two
measurements generate similar variable constructs. morality factors take these names because they can
Although innovative cultures and Confucian work be recognized, respectively, as moral values at an
ethics are measured separately, they both pertain to organizational level (professional loyalty, avoiding
organizational cultures and, thus, are analyzed to- the use of institutional data for private purposes) and
gether in a combined factor model. A total of six a social level (universality, avoidance of harmful or
factor analyses were conducted. In order to obtain an immoral conduct). The total accumulated variances
overview of the variables, correlations among the of these factor models are between 66.9 and 70.9%,
research variables also were determined.
and the Cronbach's a reliabilities are greater than

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 Effect of Confucian Work Ethics 119

TABLE III

Factor analysis of the combined innovative cultures and Confucian work ethics, respectively, for the t

Item no. Shanghai Taiwan

Faci Fac2 Fac3 Fac4 Fac5 Fac6 Faci Fac2 Fac3 Fac4 Fac5 Fac6

IV01 0.83 0.26 0.13 -0.04 0.22 0.16 0.15 0.26 0.75 0.23 0.21 0.11
IV02 0.82 0.03 0.25 0.01 -0.08 0.12 0.23 0.08 0.83 0.10 0.13 0.06
IV03 0.80 0.21 0.15 0.05 0.15 0.17 0.13 0.18 0.82 0.22 0.19 0.12
IV04 0.11 0.84 0.24 -0.13 0.10 0.09 0.10 0.06 -0.08 0.08 0.47 0.60
IV05 0.17 0.79 0.11 0.11 0.26 -0.07 0.15 0.04 0.24 0.15 0.05 0.85
IV06 0.19 0.67 0.38 0.02 0.13 0.00 0.42 -0.06 0.13 0.20 0.17 0.69
IV07 0.16 0.20 0.76 0.02 0.29 0.08 0.81 0.13 0.08 0.15 0.25 0.18
IV08 0.22 0.26 0.70 -0.14 0.17 0.09 0.72 0.15 0.29 0.19 0.12 0.09
IV09 0.21 0.42 0.66 0.07 0.23 0.08 0.84 0.15 0.17 0.19 0.04 0.20
CF1 -0.03 0.01 -0.24 0.77 -0.14 0.03 0.00 0.82 0.11 -0.03 -0.13 -0.01
CF2 0.06 0.12 0.21 0.77 0.03 0.18 0.13 0.85 0.07 0.06 0.09 0.07
CF3 0.16 -0.33 0.13 0.76 0.14 0.04 0.19 0.64 0.16 0.09 0.03 0.18
CF4 -0.24 0.16 -0.36 0.62 -0.15 0.19 0.07 0.66 0.12 0.09 0.21 -0.36
IV10 -0.03 0.18 0.12 0.02 0.83 0.09 0.23 0.09 0.08 0.80 0.16 0.11
IV11 0.16 0.19 0.33 -0.07 0.72 0.17 0.04 0.03 0.20 0.86 -0.01 0.13
IV12 0.28 0.16 0.44 -0.11 0.64 0.16 0.32 0.10 0.23 0.67 0.25 0.09
IV13 0.00 0.02 0.18 0.10 -0.05 0.83 0.17 -0.08 0.14 0.35 0.59 0.12
IV14 0.22 0.03 -0.01 0.04 0.33 0.70 0.07 0.03 0.17 0.01 0.85 0.08
IV15 0.30 -0.02 0.00 0.22 0.16 0.67 0.19 0.14 0.26 0.18 0.73 0.13
Eigenvalue 2.53 2.43 2.42 2.30 2.16 1.87 2.46 2.46 2.39 2.27 2.08 1.92
Cum. var. (%) 13.3 26.1 38.8 50.9 62.2 72.1 13.0 25.9 38.5 50.5 61.4 71.5
Cronbach a 0.85 0.82 0.81 0.74 0.82 0.70 0.84 0.77 0.86 0.80 0.70 0.76

aFactor names and the contents of each factor are listed in Appendix.

0.69, in support of their internal correlated,

consistency and discriminant
and
reliability. results that indictors of theoretically distinct con-
Table V displays the means and correlations
among all variables. The five innovative cultures and
four quality learning variables are all significantly
correlated, but these correlations are not over-
whelmingly significant (see variables 6-13). Confu-
cian work ethics correlates significantly with all the
four firm attributes, but only with risk-taking and
allowance for mistakes among the innovative culture
factors. These correlations reveal a low to moderate
correlations among the cultural and quality factors
extracted, respectively, by the six factor models
given in Tables III and IV, which also show that all
validity refers to the
structs are not highly intercorrelated (Brown, 2006).
Therefore, the overall data in Tables III, IV and V
show that the current two measures - the combined
cultures and professional quality measures - hold
both convergent and discriminant validities. In
addition, because all the means are larger than 4.0,
the median of a seven-point Likert-type scale, it
appears that both Western innovative cultures and
Confucian work ethic exit in the current sampling
firms, facilitating employees to learn about profes-
sional qualities.
The correlations of the four firm attributes with the

items have a high loading on one factor (in boldface)
and trivial or closer to zero loading on the remaining
factors across the two locations. Convergent valid-
ity refers to the evidences that different indictors
of theoretically similar constructs are strongly
five innovative cultures are fairly sporadic. Thus, it
appears that Confucian work ethics do not appear
within the construct of innovative cultures. Together
with the sample profiles in Table II, these data suggest
that firms located in Shanghai, which are mostly

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 120 Quey-Jen Yeh and Xiaojun Xu

TABLE IV

Factor analysis of professional qualities, respectively, for the two locations3'

Item no. Work skills and knowledge Item no. Morality

Shanghai Taiwan Shanghai Taiwan

Faci Fac2 Faci Fac2 Faci Fac2 Faci Fac2

PW1 0.83 0.03 0.87 0.15 PM1 0.84 0.16 0.82 0.18
PW2 0.81 -0.01 0.78 0.21 PM2 0.83 0.10 0.82 0.17
PW3 0.79 0.14 0.85 0.15 PM3 0.79 0.27 0.78 0.36
PW4 0.76 -0.17 0.74 0.16 PM4 0.77 0.25 0.79 0.29
PW5 0.75 0.07 0.84 0.12 PM5 0.03 0.85 0.11 0.87
PW6 0.03 0.87 0.00 0.89 PM6 0.26 0.77 0.34 0.78
PW7 0.00 0.86 0.21 0.84 PM7 0.32 0.65 0.30 0.73
PW8 0.01 0.82 0.40 0.64

Eigenvalue 3.10 2.23 3.56 2.04 2.78 1.90 2.79 2.17

Cum. var. (%) 38.8 66.6 44.5 69.9 39.7 66.9 39.8 70.9
Cronbach a 0.89 0.76 0.84 0.81 0.86 0.78 0.85 0.69

aFactor names and the contents of each factor are l

Work skills/knowledge and morality are factor ana

MNCs, have a lower level of Confucian

All the cultural work
models, except the four Mis that e
than do those in Taiwan, where most are
include no cultural variables, reveal significant POEs
Table VI illustrates the
F-values, relationships
and the R2 values are all greater among
than 0.20. t
four firm attributes Overall
and then, these analyses innovative
corporate support Hypothesis 1: cult
without (Model 1) and with
Innovative (Model
cultures together 2) work
with Confucian Confu
work ethics included as the sixth cultural dimension. ethics positively affect learning about four professional
Firm size is the only firm variable of significance in qualities. In addition, MNC status moderates the rela-
Model 1 , whereas all four firm variables are significant tionship between Confucian work ethics and quality
in Model 2. A comparison of the two models shows learning, particularly for learning professional knowl-
that these significant differences are due primarily to edge and social morality; except for general knowledge
the firm's location and ownership, that is, whether the learning, with a negative sign, these moderations are
firms are located in Shanghai or Taiwan and are negative. Therefore, Hypothesis 2 is partially sup-
MNCs or POEs. In other words, Westernization and ported. In other words, non-MNCs, which are mostly
regional development represent important determi- POEs, hold a higher level of Confucian work ethics,
nants in this changing cultural process. which moderates the learning in general. Furthermore,
Table VII describes the influences of the five the positive effects of Confucian work ethics on
innovative cultures combined with Confucian work learning about the four qualities suggest the benefits of
ethics on learning about general and professional maintaining this Chinese value at work.
knowledge; Table VIII describes those for social and In order to clarify the moderations, Figure 1
professional morality. Each quality standard under- expresses the two significances among the four M4
goes testing by four hierarchical regression models: models in Tables VII and VIII in graphical form.
Ml tests the effects of MNC and firm size; M2 tests Each line represents MNC or POE ownership. This
the effects of the five innovative cultures; M3 tests graph provides a visual depiction of the differences in
both innovative cultures and Confucian work ethics; the slopes and intercepts of the moderation model,
and M4 attempts to test the moderators of MNC illustrating how MNC and POE ownership affects
with Confucian work ethics. For all the models, the the relationship between Confucian work ethics and
individual demographics serve as covariates. quality learning. In general, the average high scores

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 £#êrf of Confucian Work Ethics 121
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 122 Quey-Jen Yeh and Xiaojun Xu

TABLE VI

The relationships between firm attributes and cultural model without and with inclusion of Confucian

Dependent variables Model Ia Model 2a

Firm attributes Five innovative cultures only Five innovative cultures + Confucian work ethics

Firm size 3.86*** 3.59***

MNC 1.35 3.73***
POE 1.46 2.89**
Location 1.73 2.65*

***/> < 0.001; **p <

aWilks' Lambda F- valu

TABLE VII

Effects of innovative cultures and Confucian work ethics on knowledge learning and the moderat
for VOE) on the effects3

Dependent variables General knowledge Professional knowledge

Independent variables Ml M2 M3 M4 Ml M2 M3 M4
(constant)

Confucian work ethics 0.24*** 0.1 6+ 0.1 2+

Innovative cultures
Autonomy 0.16** 0.16*** 0.16**
Risk-taking 0.25*** 0.23*** 0.24***
Tolerance of conflict 0.25** 0.25*** 0.23***
Allowance for mistakes 0.17* 0.13+ 0.11
Valuing competence 0.15*** 0.15*** 0.16***
Moderator
MNCb -0.22 -0.12 -0.80 0.19+ 0.24** 0.25** 0.91*
MNCb x Confucian 0.17 -0.15+
work ethics
Covariates
Firm size -0.20** -0.25*** -0.23*** -0.22***
Gender -0.08 0.19 0.10 0.10 0.10
Age 0.09
Education -0.24* -0.18+ -0.16+ -0.16+ 0.15* 0.12+ 0.12* 0.12*
Managerial level 0.15 0.12 0.14 0.12
Tenure current job -0.14*
Model F-value 6.471*** 9.335*** 10.106*** 9.532*** 3.810*** 15.943*** 14.784*** 13.993***
significance
R2 0.116 0.248 0.279 0.283 0.072 0.360 0.362 0.367
AR2 - 0.132*** 0.031* 0.004 - 0.288*** 0.002 0.005+

***p < 0.001; **p < 0.01; *p < 0.05; +p < 0.10.
aOnly coefficients larger than 0.08 are listed.
bMNC: 1; POE: 0.

(over the medium 4 in a seven-point scale)

cian work across
ethics the
for learning abou
quality.
two groups in the two diagrams However,
suggest because most
that both
MNCs and POEs recognize the benefits
Taiwan's of Confu-
sample are POEs, the hig

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 Effect of Confucian Work Ethics 123

TABLE VIII

Effects of innovative cultures and Confucian work ethics on morality learning and the moderat
on the effects3

Dependent variables Social morality Professional morality

Independent Ml M2 M3 M4 Ml M2 M3 M4
variables (constant)

Confucian work ethics 0.09+ 0.21** 0.13* 0.15*

Innovative cultures
Autonomy 0.08 0.08
Risk-taking 0.10* 0.09+ 0.08
Tolerance of conflict 0.18** 0.17** 0.14* 0.33*** 0.32*** 0.31***
Allowance for mistakes 0.30*** 0.28*** 0.30*** 0.14** 0.12* 0.12*
Valuing competence 0.15** 0.16*** 0.16***
Moderator
MNCb -0.13 1.11* 0.20+ 0.26** 0.29** 0.71+
MNCb x Confucian -0.25* -0.10
work ethics
Covariates
Firm size 0.17*** 0.09* 0.10* 0.10*
Gender -0.14 -0.15 -0.14 -0.14 -0.15 -0.15
Age
Education

Managerial level 0.10 0.11+ 0.12+

Tenure current job -0.08 -0.11 +
Model F-value 0.692 13.204*** 12.535*** 12.278*** 3.852*** 14.965*** 14.349*** 13.398***
R2 0.014 0.318 0.325 0.337 0.072 0.346 0.355 0.357
AR2 - 0.304*** 0.007+ 0.012* - 0.274*** 0.009* 0.002

***/> < 0.001; **p < 0.01; *p < 0.05; +p < 0.10.
aOnly coefficients larger than 0.08 are listed.
bMNC: 1; POE: 0.

Figure 1 . The moderating of MNC (or POE) on the relationship

a professional knowledge; b social morality.

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 124 Quey-Jen Yeh and Xiaojun Xu

slight
POE in both diagrams suggest that and sporadic
subjects insignificances.
Tai- Together, these
wan perceive the stronger facilitation
empirical of Confucian
results indicate that though technology may
work ethics for the two types of learning
bring the Chinesethan dosector closer to Western
high-tech
those in Shanghai. innovative styles, the Confucian work ethic dimen-
sion has significant value and represents a unique
cultural dimension. Traditional Confucian concepts
Discussion and managerial implication
are not fading away in this fast-changing industry; yet,
change is moving in a positive direction.
Reconciling innovative cultures with Confucian work ethics

Chinese business values seem autocratic,

Western andcentralized,
Eastern cultures: learning about professional
traditional, and crooked Guanxi,quality
which seemingly
represent the negative extreme of Confucian dynamics
(Hofstede and Bond, 1988), and might impede
As prime mechanisms tech-
for creating and sustaining new
nology advances and innovation. Ontechnologies,
the more innovation and its related cultures are
positive
side, a Confucian ethical dimension exists
absolutely that
imperative con-sectors (O'Connor
in high-tech
forms to supervisory rules (versus and Ayers, 2005; Zienrespects
autocratic), and Buckler, 1997). Such work
principles
seniors (versus centralized), values the ethics apply of
to both organizations and individual
seniority
(versus traditional), and values personal
behaviors. Therelationships
high-tech cultures studied herein reflect
(versus crooked Guanxi). This positive dimension
their facilitations to learning about knowledge and
justifies how these values might function in a In
morality by S&T employees. work
particular, in addition to
context. They, thus, reveal prospective contrasts
demonstrating the benefitswith
of Western innovative cul-
the negative conceptualizations outlined
tures, this studypreviously,
shows significant relationships - in some
though they represent the same dimensions, and pro-
cases even more significant than those pertaining to
Western innovative
vide a means to gauge whether Chinese cultures - between Confucian work
high-tech
employees still embrace these traditional, positive
ethics and learning. val-
This variable is the only one to reveal
ues. By combining them with Western innovative
significant impacts on the four types of learning, namely,
cultures, firms in the Chinese high-tech
general knowledge,sector may
professional knowledge, social
achieve several benefits, especially considering
morality, the
and professional morality. Among the other
larger scale of MNCs in modern China. Most
five innovative cultures, enter-
tolerance for conflict affects
prises in Shanghai are Western MNCs,
three types ofand
learningmost of
(professional knowledge and the
those in Taiwan are POEs; therefore, our
two moralities), samples
allowance for mistakes influences the
indicate two different levels of Westernization.
two moralities, and valuing competence affects profes-
The two factor analyses of this sional
combined culture
knowledge and professional morality. Autonomy
model indicate a consistent six-fàctor
and risk-taking each influencein
solution, only professional or
which the Confucian work ethics general
dimension emerges
knowledge, respectively. These results apply
as a valid factor that is independent oftwo
across the
typesother five (MNC and POE).
of firm ownership
innovative cultures across both locations. The five The findings imply that even in high-tech sectors,
innovative factors - autonomy, risk-taking, allowance Chinese employees are not accustomed to autonomy
for mistakes, tolerance of conflict, and valuing com-
and risk-taking, as commonly appear in Western cor-
petence - are analogous to the results in innovationporations, partly because these values seem contradic-
literature. Correlation analyses suggest that Confuciantory with a traditional group orientation that may
work ethics do not relate to autonomy, tolerance for
incline to discourage individual interests and prioritizes
conflict, and valuing competence; they relate slightly status and risk aversion. However, employees with a
greater tendency toward autonomy and risk-taking
to risk-taking and allowance for mistakes; and they are
highly related to four firm attributes (MNC, POE, perceive that the organization can facilitate their
firm location, and size). The five innovative factors
learning of professional and general knowledge,
relate moderately to one another, whereas their
respectively. In addition, subjects that reveal a higher
correlations with the four firm attributes reveal onlyacceptance of mistakes and competence attain increased

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 Effect of Confucian Work Ethics 125

learning about the two moralities (social and profes-

In addition, Westernization alone may not be
useful approach in Chinese high-tech secto
sional) and about professional knowledge and morality.
These results may reflect the correlation between
allowances for mistakes and Confucianism's virtue of
Further research
benevolence, which often appears as kindness and
personal relationships. Valuing competence appears to
This empirical study is one of the few, if not only, to test
be a Western concept; therefore, it is not surprising that
a combined Western and Eastern cultural model and
it relates more closely to professional issues.
investigate its effects on learning about both knowledge
Tolerance for conflict attains the highest significance
and morality by S&T professionals in Chinese high-tech
for teaching lessons among the five innovative cultures,
sectors. Although this study empirically reveals that both
which seems surprising in a Chinese work environ-
ment. This Western tolerance value and Confucian types of cultures can advance learning by Chinese S&T
personnel and that Confucian work ethics may be even
work ethics both almost equally influence the facilita-
more effective, some unsolved questions remain. Spe-
tion of learning about the two moralities, whereas it
cifically, in addition to hierarchy and harmony, other
more effectively teaches about professional knowledge
positive Chinese values may be worthy of study. For
and Confucian work ethics more effectively teach
example, Chinese people are known for their diligence
general knowledge. Both forms aspire to achieve har-
and hard work; they treasure every minute in their lives,
mony, but one focuses on conflict tolerance - the
which seems to contradict their worship for the past and
Western way - whereas the other emphasizes respect
tradition. Their social disdain for people who only enjoy
for hierarchy - the Eastern way. They thereby facilitate
physical pleasures and respect for those who pursue
learning differently. Moreover, these two seemly
spiritual satisfaction also suggests some contradictions in
conflicting styles appear to complement each other to
their philosophy. Furthermore, Shanghai and Taiwan
facilitate improved learning among Chinese businesses.
are more Westernized than most other cities in main-
This paradoxical situation also emerges in theland China. Whether the current benefits Taiwan
culture-performance survey performed by Franke
achieves from Confucian work ethics also apply to other
et al. (1991). Using comparisons across 20 Western
Chinese cities, located father away from the coast, re-
and Eastern countries, they reveal that persons in
quires additional study. Additional research also might
richer nations, including Japan and countries in North
take into account different professions, for instance,
America, Western Europe, and Australia, but not
marketing or accounting professionals, and regional
Hong Kong and Singapore, tend to have a higher
technology differences. In particular, Taiwan tends to
level of individualism and integrity (they define
use public institutional innovations to diffuse the tech-
integrity as tolerance for conflict to achieve har-
nological capabilities of privately owned, market-driven
mony). Taiwan, Hong Kong, and Singapore, the
companies. Other than in Shanghai and Beijing, state-
three overseas Chinese societies investigated in the
owned enterprises remain the main challenge for China
survey, are less individualistic and have less tolerance
to adopt Western management practices. Further study
for conflict than their counterparts in Western
on government-owned and influenced enterprises also
countries, with Taiwan emerging as the least tolerant
is needed.
among the three Chinese cultures. However,
Taiwan's higher score on the Confucian dynamics
dimension indicates the search for harmony through
status hierarchies as well.
Acknowledgment
Finally, though the samples from both locations
This research was funded by the National Science
enjoy positive advantages from their combined cul-
Council of Taiwan, Project number: NSC95-2416-H-
tures, Shanghai appears more Westernized than Tai- 006-003-MY2.
wan, and Taiwan benefits more from Confucian work
ethics and a higher level of quality learning, particu-
larly with regard to morality. This result may suggest Appendix
the benefits of Confucius's ideas, if they are not used
excessively to emphasize the negative aspects. See Table IX.

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 126 Quey-Jen Yeh and Xiaojun Xu

TABLE IX

Factor's names and the contents in each factor

Item no. Content and factor names (results of factor analyses)

Risk-taking
IV01 This firm allows employees to try new or different ways of work
IV02 Leadership here likes to publicly encourage innovative employees
IV03 This firm is willing to try new ideas proposed by employees
Valuing (professional) competence
IV04 This firm values employees more by their performances than by their personal relationships
IV05 The promotion system here considers first work performance, then seniority
IV06 This firm recognizes the imperative of professional competence before seniority
Tolerance of conflict

IV07 Despite conflicts, employees here respect the opinions of others

IV08 Employees here are willing to talk in meetings, even when they disagree with others
IV09 Employees here communicate and compromise when there are conflicts at work
Confucian work ethics

CF1 Complying with supervisor is imperative here

CF2 Young employees here respect senior employees
CF3 This firm values personal relationship
CF4 This firm values the ethics of seniority
Autonomy
IV10 This firm allows employees to adjust their work schedules without delaying others
IVI 1 This firm allows employees to determine solutions to problems to a certain extent
IVI 2 This firm gives employees the highest extent of work autonomy
Allowance for mistake

IVI 3 Failure is tolerated if it is not due to purposeful mistakes or indolence

IVI 4 This firm recognizes the work philosophy: "Failure is the mother of success"
IVI 5 This firm values the hard work of employees rather than simply the outcomes
Professional knowledge
QW1 Judgment and reasoning
QW2 Data search
QW3 Information dealing
QW4 Computers
QW5 Professional know-how
General knowledge
QW6 Economics and government policies
QW7 Knowledge beyond work
QW8 Market and industry sensitivity
Professional morality
QM1 Not tell the secrets of the firm to outside friends
QM2 Not copy secret data of the firm without legal permission
QM3 Look out for immoral behaviors, even if there are no written down rules in the firm
QM4 Those who apply unethical behaviors to gain benefits for the firm should be punished
Social morality
QM5 Bear in mind the best for others, not personal gain
QM6 Always consider above all the benefits to customers and the public
QM7 Follow the golden rule: morality outranks everything

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 Effect of Confucian Work Ethics 127

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