Abstract
The intellectual debates on wise entrepreneurship behavior such as decision making tend to focus on the relationship between economic rationality and morality, while overlooking the important role affect plays. To fill in this gap, this paper proposes a theoretical framework based on the Confucian concepts of ren (love and compassion) and yi (righteousness or rightness) and studies their practical manifestation in qing (positive emotions) and li 1 (rationality) for decision making. Drawing from 32 in-depth interviews and 52 vignettes with Chinese SME entrepreneurs, this study has found that qing (emotions) plays an essential role in decision making. Chinese entrepreneurs had to deal with the dilemma relating to qing (positive emotions) and li 1 (rationality) holistically to reach a balanced outcome in their everyday business practices. As a major contribution, this study extends the study of Confucian ethics by highlighting ren-yi as an important perspective for understanding Chinese entrepreneurial decision making and also for promoting the affective dimensions for entrepreneurial ethical decision making in general.
Similar content being viewed by others
References
Ahlstrom, D., & Bruton, G. D. (2002). An institutional perspective on the role of culture in shaping strategic action by technology-focused entrepreneurial firms in China. Entrepreneurship Theory and Practice, 26(4), 53–69.
Anderson, A. R., & Lee, E. Y. (2008). From tradition to modern: Attitudes and applications of guanxi in Chinese entrepreneurship. Journal of Small Business and Enterprise Development, 15(4), 775–787.
Anderson, A. R., & Warren, L. (2011). The entrepreneur as hero and jester: Enacting the entrepreneurial discourse. International Small Business Journal, 29(6), 589–609.
Aristotle, (1991). Aristotle on Rhetoric: A Theory of Civic Discourse. Tr. New York, Oxford: George A. Kennedy.
Baumol, W. J. (1990). Entrepreneurship: Productive, unproductive, and destructive. The Journal of Political Economy, 98(5), 893–921.
Carland, J. W., Hoy, F., Boulton, W. R., & Carland, J. A. C. (1984). Differentiating entrepreneurs from small business owners. Academy of Management Review, 9(2), 354–359.
Carr, P. (2000). The Age of Enterprise: The Emergence and Evolution of Entrepreneurial Management. Dublin: Blackhall.
Chan, W. (1955). The evolution of the Confucian concept Jen. Philosophy East and West, 4, 295–319.
Chell, E. (2007). Social entrepreneurship: Towards a convergent theory of the entrepreneurial process. International Small Business Journal, 25(1), 5–26.
Chell, E., Haworth, J., & Brearley, S. (1991). The entrepreneurial personality: Cases and categories. London: Routledge.
Chen, X., & Chen, C. (2004). On the intricacies of the Chinese Guanxi: A process model of guanxi development. Asia Pacific Journal of Management, 21, 305–324.
Cheng, C. (1972). On yi as a universal principle of specific application in Confucian morality. Philosophy East and West, 22(3), 269–280.
Cheung, W. (1986). Lunyu (The Analects). Hong Kong: Hong Kong Confucian Study Press.
Cheung, C., & Chan, A. C. (2005). Philosophical foundations of eminent Hong Kong Chinese EEOs’ leadership. Journal of Business Ethics, 60(1), 47–62.
Cheung, T. S., & King, A. Y. (2004). Righteousness and profitableness: The moral choices of contemporary Confucian entrepreneurs. Journal of Business Ethics, 54(3), 245–260.
Collins, L. A., Smith, A. J., & Hannon, P. D. (2006). Applying a synergistic learning approach in entrepreneurship education. Management Learning, 37(3), 335–354.
Dunham, L. C. (2010). From rational to wise action: Recasting our theories of entrepreneurship. Journal of Business Ethics, 92(4), 513–530.
Dutton, J. E., Worline, M. C., Frost, P. J., & Lilius, J. (2006). Explaining compassion organizing. Administrative Science Quarterly, 51(1), 59–96.
Enos, R. L. (1993). Greek Rhetoric before Aristotle. Waveland: Prospect Heights, IL.
Enos, R. L. (1999). Recovering the lost art of researching the history of rhetoric. Rhetoric Society Quarterly, 29(4), 7–20.
Fayol, H. (1949). General and industrial management. London: Pitman.
Fletcher, D. E. (2006). Entrepreneurial processes and the social construction of reality. Entrepreneurial and Regional Development, 18(5), 412–440.
Fletcher, D. (2007). ‘Toy Story’: The narrative world of entrepreneurship and the creation of interpretive communities. Journal of Business Venturing, 22(5), 649–672.
Fredrickson, J. W. (1984). The comprehensiveness of strategic decision processes: Extension, observation, future directions. Academy of Management Journal, 27(3), 445–466.
Frost, P. J. (1989). Why compassion counts! Journal of Management Inquiry, 8, 127–133.
Fu, Y., & He, Z. (1996). Dai Xue Zhong Yong (Great Learning, the Doctrine of the Mean). Beijing: Sinolingua Press.
Gan, Y. (2007). Zhongguo daoluo, sanshi nian yu liushi nian (Chinese way: Thirty years and sixty years). Dushu (Reading), 6, 3–13.
Gartner, W. B. (2007). Entrepreneurial narrative and a science of the imagination. Journal of Business Venturing, 22(5), 613–627.
Hatch, M. J. (1996). The role of the researcher: an analysis of narrative position in organizational theory. Journal of Management Inquiry, 5, 359–374.
Hewitt-Taylor, J. (2001). Use of constant comparative analysis in qualitative research. Nursing Standard, 15(42), 39–42.
Holt, R., & Macpherson, A. (2010). Sensemaking, rhetoric and the socially competent entrepreneur. International Small Business Journal, 28(1), 20–42.
Hood, N., & Young, S. (1993). Entrepreneurship’s requisite areas of development: A survey of top executives in successful entrepreneurial firms. Journal of Business Venturing, 8(2), 115–135.
Hwang, K. K. (1987). Face and favour: The Chinese power game. American Journal of Sociology, 92(4), 945–974.
Hwang, K. K. (2000). Chinese relationalism: Theoretical construction and methodological considerations. Journal for the Theory of Social Behavior, 30(2), 155–178.
Hwang, K. K. (2012). Foundations of Chinese psychology: Confucian social relations. New York: Springer.
Ip, P. K. (2009). Is Confucianism good for business ethics in China? Journal of Business Ethics, 88, 463–476.
Kao, J. (1993). The worldwide web of Chinese business. Harvard Business Review, 93, 24–36.
Khana, T. (2008). Billion of entrepreneurs: How China and India are reshaping their futures and yours. India: Viking Penguin.
Knoblock, J. (1990). Xunzi: A translation and study of the complete works. Stanford: Stanford University Press.
Langenberg, E. (2007). Guanxi and business strategy. New York: Physica.
Lau, D. C. (Ed.). (1995). A Concordance to the Menzi. Classical words No. 15. Hong Kong: The Commercial Press.
Li, X. (1996). “Good writing” in cross-cultural context. Albany: State University of New York Press.
Li, J. (2008). San zi jing zhuyao banben yan jiu (A study of main versions of Children’s classics of sanzi jing). Xueshu yanjiu (Academic Research), 8, 125–129.
Lilius, J. M., Worline, M. C., Dutton, J. E., Kanov, J. M., & Maitlis, S. (2011). Understanding compassion capability. Human Relations, 64(7), 873–899.z.
Louie, K. (2002). Theorizing Chinese masculinity. Cambridge: Cambridge University Press.
Lu, X. (1998). Rhetoric in ancient China, fifth to third century B.C.E. Columbia, SC: University of Carolina Press.
Luo, Y. (2007). Guanxi and business (2nd ed.). Singapore: World Scientific.
Lyubomirsky, S., King, L., & Deiner, E. (2005). The benefits of frequent positive affect: Does happiness lead to success? Phychological Bulletin, 131(6), 803–855.
Marshall, R. S. (2011). Conceptualizing the international for-profit social entrepreneur. Journal of Business Ethics, 98, 183–198.
McDonald, G., & Pak, P. C. (1996). It’s all fair in love, war, and business: Cognitive philosophies in ethical decision making. Journal of Business Ethics, 15, 973–996.
McVea, J. F. (2009). A field study of entrepreneurial decision-making and moral imagination. Journal of Business Venturing, 24(5), 491–504.
Miller, T. L., Crimes, M. G., McMullen, J. S., & Vogus, T. J. (2012a). Venturing for others with heart and head: How compassion encourages social entrepreneurship. Academy of Management Review, 37, 616–640.
Miller, T. L., Grimes, M. G., McMullen, J. S., & Vogus, T. J. (2012b). Venturing for others with heart and head: How compassion encourages social entrepreneurship. Academy of Management Review, 37, 616–640.
Mills, C., & Pawson, K. (2011). Integrating motivation, risk-taking and self identity: A typology of ICT enterprise development narrative. International Small Business Journal, 16(1), 60–77.
O’Connor, E. (2002). Storied business: Typology, intertextuality, and traffic in entrepreneurial narrative. The Journal of Business Communication, 39(1), 36–54.
O’Connor, E. S. (2007). Reader beware: Doing business with a store(y) of knowledge. Journal of Business Venturing, 22(5), 637–648.
Peng, K., & Nisbett, R. E. (C1999). Culture, dialectics, and reasoning about contradiction. American Psychologist, 54(9), 741–754.
Pentland, B. T. (1999). Building process theory with narrative: From description to explanation. Academy of Management Review, 24(4), 711–724.
Puffer, S. M., McCarthy, D. J., & Boisot, M. (2010). Entrepreneurship in Russia and China: The impact of formal institutional voids. Entrepreneurship Theory and Practice, 34(3), 441–467.
Rigg, C. (2005). It’s in the way they talk: A discourse analysis of managing in two small businesses. International Journal of Entrepreneurial Behaviour & Research, 11, 58–75.
Sheng, G. (Ed.). (1995). Zhongguo rujia wenhua mingzhu (Selected reputable works of Confucian Scholars). Yanji: Yanbian University Press.
Shih, W. Y. C. (1959). (Trans. The literary mind and the carving of dragons by Liu Xie). New York: Columbia University Press.
Smith, A. (1759). Theory of the moral sentiments. New York: Liberty Press.
Smith, A. (1776). An inquiry into the nature and causes of the wealth of nations. London: Methuen & Co., Ltd.
Solomon, R. C. (1998). The moral psychology of business: Care and compassion in the corporation. Business Ethics Quarterly, 8, 515–533.
Sørensen, J. B., & Fassiotto, M. A. (2011). Organizations as fonts of entrepreneurship. Organization Science, 22(5), 1322–1331.
Tolbert, P. S., David, R. J., & Sine, W. D. (2011). Studying choice and change: The intersection of institutional theory and entrepreneurship research. Organization Science, 22(5), 1332–1344.
Tsang, W. K. (1998). Can guanxi be a source of sustained competitive advantage for doing business in China? Academy of Management Executive, 12, 64–73.
Wang, B. (2004). Zaiqi rujia ren yi shuo de yanjiu (A study of ren and yi of early Confucian school of thought). In Proceeding of East Asian conference on language and classics, November 18–19, Taiwan University.
Watson, T. J. (1994). Managing, crafting and researching: words, skill and imagination in shaping management research. British Journal of Management, 5, S77–S87.
Weber, M. (1964). The religion of China: Confucianism and Taoism. New York: Macmillan.
Witzel, M. (2005). What we owe to Chinese classical economics. EBF, 20, 89–91.
Xin, K. M., & Pearce, J. L. (1996). Guanxi: connections as substitutes for structural support. Academy of Management Journal, 39, 1641–1658.
Yang, M. M. (2002). The resilience of Guanxi and its new deployments: A Critique of some new guanxi scholarship. The China Quarterly, 170, 459–476.
Young, J. E., & Corzine, J. B. (2004). The Sage entrepreneur: A review of traditional Confucian practices applied to contemporary entrepreneurship. Journal of Enterprising Culture, 12(1), 79–104.
Yu, S. (2004). Huise de lixing (The grey rationality). Beijing: Manufacturing Industry Press.
Yueh, L. (2008). The Chinese entrepreneur. Business Strategy Review, Summer, 61–64.
Zeng, G. (2006). Zhongguo zhihui (Chinese wisdom). Beijing: Chinese Workers’ Press.
Zhu, Y. (2009a). Managing business relationships in New Zealand and China: A semantic perspective. Management International Review, 49(2), 225–248.
Zhu, Y. (2009b). Confucian ethics exhibited in the discourse of Chinese marketing communication. Journal of Business Ethics, 88(3), 517–528.
Zhu, Y. (2011). Practical Confucian wisdom for entrepreneurship development and training in China. Philosophy of Management, 10(1), 95–111.
Zhu, Y., Nel, P., & Bhat, R. (2006). A cross cultural study of communication strategies for building business relationships. International Journal of Cross Cultural Management, 6(3), 319–341.
Acknowledgments
Thanks are given to Professor Herb Hildebrandt, Professor Neal Ashkanasy, and Pingxin Zhang for their valuable input and comments on the previous versions of this paper. Thanks are also given to the section editor Professor Alejo Jose G. Sison and the two anonymous reviewers for their valuable and constructive comments.
Author information
Authors and Affiliations
Corresponding author
Appendix
Appendix
See Table 5.
Glossary of Major Chinese Terms used in this Paper
- li
-
礼 (rites)
- li 1
-
理 (rationality)
- ren
-
仁 (love and compassion)
- qing
-
情 (positive emotions)
- wulun
-
五伦 (five relations)
- xin
-
心 (affect domain)
- yi
-
义 (righteousness)
- yi-li 1
-
义理 (righteous order)
Rights and permissions
About this article
Cite this article
Zhu, Y. The Role of Qing (Positive Emotions) and Li 1 (Rationality) in Chinese Entrepreneurial Decision Making: A Confucian Ren-Yi Wisdom Perspective. J Bus Ethics 126, 613–630 (2015). https://doi.org/10.1007/s10551-013-1970-1
Received:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s10551-013-1970-1