Skip to main content
Log in

“Confucian” traits, entrepreneurial personality, and entrepreneurship in China: a regional analysis

  • Published:
Small Business Economics Aims and scope Submit manuscript

Abstract

Regional personality differences have been linked to regional entrepreneurship in Western countries. Here, we offer a first analysis of the relationship between regional personality and manifest and latent entrepreneurship in China. Because Western research has highlighted the role of an entrepreneurial constellation of the Big Five traits, we compare region-level correlates of Big Five scores with corresponding correlates of indigenous “Confucian” traits, interpersonal relatedness, and its sub-facets traditionalism, Renqing, face, discipline, and harmony. We utilize personality data collected from a representative sample (N = 26,405) of 44 major Chinese cities. We find substantial, meaningful, and robust negative correlations of interpersonal relatedness and its sub-facet traditionalism, face, and discipline with indicators of both manifest entrepreneurship (e.g., rate of newly registered individually owned businesses) and latent entrepreneurship (e.g., number of entrepreneurship-related search queries in the leading Chinese internet search engine: Baidu.com). Robustness checks using the geographical distance to the Forbidden City in Beijing as an exogenous instrument for regional “Confucian” traits supported our findings. In contrast, regional levels in the Big Five traits and in an entrepreneurial Big Five profile were rather irrelevant (e.g., openness was negatively associated with indicators of manifest entrepreneurship). Our study indicates the usefulness of an indigenous personality approach in the study of entrepreneurship in China. The present results give rise to the idea that in populations in China with less emphasis on traditional Confucian values and norms, the development of an active entrepreneurial culture is more accelerated.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Fig. 1
Fig. 2

Similar content being viewed by others

References

  • Audretsch, D. B., & Fritsch, M. (1994). The geography of firm births in Germany. Regional Studies, 28(28), 359–365.

    Google Scholar 

  • Audretsch, D. B., Hülsbeck, M., & Lehmann, E. E. (2012). Regional competitiveness, university spillovers, and entrepreneurial activity. Small Business Economics, 39(3), 587–601.

    Google Scholar 

  • Audretsch, D. B., Obschonka, M., Gosling, S. D., & Potter, J. (2017). A new perspective on entrepreneurial regions: linking cultural identity with latent and manifest entrepreneurship. Small Business Economics, 48(3), 681–697.

    Google Scholar 

  • Becker, S. O., & Woessmann, L. (2010). The effect of Protestantism on education before the industrialization: Evidence from 1816 Prussia. Economics Letters, 107(2), 224-228.

    Google Scholar 

  • Beugelsdijk, S. (2010). Entrepreneurial culture, regional innovativeness and economic growth. In: Entrepreneurship and culture. Springer, Berlin, pp. 129–154

    Google Scholar 

  • Carneiro, H. A., & Mylonakis, E. (2009). Google trends: a web-based tool for real-time surveillance of disease outbreaks. Clinical Infectious Diseases, 49(10), 1557–1564.

    Google Scholar 

  • Cefis, E., & Marsili, O. (2006). Survivor: the role of innovation in firms’ survival. Research Policy, 35(5), 626–641.

    Google Scholar 

  • Chen, X., & French, D. C. (2008). Children’s social competence in cultural context. Annual Review of Psychology, 59, 591–616.

    Google Scholar 

  • Chen, X., Cen, G., Li, D., & He, Y. (2005). Social functioning and adjustment in Chinese children: the imprint of historical time. Child Development, 76(1), 182–195.

    Google Scholar 

  • Chen, G., Li, J., & Matlay, H. (2006). Who are the Chinese private entrepreneurs?: a study of entrepreneurial attributes and business governance. Journal of Small Business and Enterprise Development, 13(2), 148–160.

    Google Scholar 

  • Chen, L., Jin, Z., Ma, Y., & Xu, H. (2018). Confucianism, openness to the West, and corporate investment efficiency. European Financial Management. https://doi.org/10.1111/eufm.12173.

    Google Scholar 

  • Cheung, F. M., Leung, K., Fan, R. M., Song, W. Z., Zhang, J. X., & Zhang, J. P. (1996). Development of the Chinese Personality Assessment Inventory (CPAI). Journal of Cross-Cultural Psychology, 27(2), 181–199.

    Google Scholar 

  • Cheung, F. M., Leung, K., Zhang, J. X., Sun, H. F., Gan, Y. Q., Song, W. Z., & Xie, D. (2001). Indigenous Chinese personality constructs: is the five-factor model complete? Journal of Cross-Cultural Psychology, 32(4), 407–433.

    Google Scholar 

  • Cheung, F. M., Cheung, S. F., Zhang, J., Leung, K., Leong, F., & Huiyeh, K. (2008). Relevance of openness as a personality dimension in Chinese culture aspects of its cultural relevance. Journal of Cross-Cultural Psychology, 39(1), 81–108.

    Google Scholar 

  • Costa, P. T., & McCrae, R. R. (1992). Revised NEO personality inventory (NEO PI-R) and NEO five-factor inventory. Florida: Psychological Assessment Resources Inc..

    Google Scholar 

  • Davidsson, P. (1995). Culture, structure and regional levels of entrepreneurship. Entrepreneurship & Regional Development, 7(1), 41–62.

    Google Scholar 

  • Davidsson, P., & Honig, B. (2003). The role of social and human capital among nascent entrepreneurs. Journal of Business Venturing, 18(3), 301–331.

    Google Scholar 

  • Davidsson, P., & Wiklund, J. (1997). Values, beliefs and regional variations in new firm formation rates. Journal of Economic Psychology, 18(2–3), 179–199.

    Google Scholar 

  • Digman, J. (1990). Personality structure: emergence of the five-factor model. Annual Review of Psychology, 41, 417–440.

    Google Scholar 

  • Eisenberger, R., Armeli, S., Rexwinkel, B., Lynch, P. D., & Rhoades, L. (2001). Reciprocation of perceived organizational support. Journal of Applied Psychology, 86(1), 42–51.

    Google Scholar 

  • Eisenberger, R., Stinglhamber, F., Vandenberghe, C., Sucharski, I. L., & Rhoades, L. (2002). Perceived supervisor support: contributions to perceived organizational support and employee retention. Journal of Applied Psychology, 87(3), 565–573.

    Google Scholar 

  • Elleman, L. G., Condon, D. M., Russin, S. E., & Revelle, W. (2018). The personality of US states: stability from 1999 to 2015. Journal of Research in Personality, 72, 64–72.

    Google Scholar 

  • Fritsch, M., & Wyrwich, M. (2014). The long persistence of regional levels of entrepreneurship: Germany, 1925–2005. Regional Studies, 48(6), 955–973.

    Google Scholar 

  • Fritsch, M., Obschonka, M., Wyrwich, M., Gosling, S. D., Rentfrow, P. J., & Potter, J. (2018). Regionale Unterschiede der Verteilung von Personen mit unternehmerischem Persönlichkeitsprofil in Deutschland–ein Überblick. Raumforschung und Raumordnung| Spatial Research and Planning. https://doi.org/10.1007/s13147-018-0519-2.

    Google Scholar 

  • Gan, Y. Q., Cheung, F. M., Wan, X. A., & Sun, Z. X. (2002). Predicting work performance of middle and top managers of state-owned enterprise using the Chinese Personality Assessment Inventory (CPAI). Chinese Journal of Applied Psychology, 8(3), 35–39.

    Google Scholar 

  • Garretsen, H., Stokera, J. I., Soudisa, D., Martin, R., & Rentfrow, J. P. (2018). The relevance of personality traits for urban economic growth: Making space for psychological factors. Journal of Economic Geography.

  • Guiso, L., Sapienza, P., & Zingales, L. (2004). Does culture affect economic outcomes? Journal of Economic Perspectives, 20, 23–48.

    Google Scholar 

  • Herrmann-Pillath, C. (2011). A ‘third culture’ in economics? An essay on Smith, Confucius and the rise of China. Frankfurt School - Working Paper Series 159, Frankfurt School of Finance and Management. http://hdl.handle.net/10419/45025.

  • Hisrich, R., Langan-Fox, J., & Grant, S. (2007). Entrepreneurship research and practice: a call to action for psychology. American Psychologist, 62(6), 575–589.

    Google Scholar 

  • Hofstede, G., & McCrae, R. R. (2004). Personality and culture revisited: linking traits and dimensions of culture. Cross-Cultural Research, 38(1), 52–88.

    Google Scholar 

  • Hou, C. C., & Hou, J. W. (2002). Evolution of economic institutions and China’s economic reform. Social Science Journal, 39(3), 363–379.

    Google Scholar 

  • Huang, X., Zhang, L., & Ding, Y. (2017). The Baidu Index: Uses in predicting tourism flows – a case study of the Forbidden City. Tourism Management, 58, 301–306.

  • Huggins, R., & Thompson, P. (2018). The behavioural foundations of urban and regional development: culture, psychology and agency. Journal of Economic Geography. https://doi.org/10.1093/jeg/lbx040.

    Google Scholar 

  • Ip, P. K. (2009). Is Confucianism good for business ethics in China? Journal of Business Ethics, 88(3), 463–476.

    Google Scholar 

  • Isaacson, W. (2011). Steve Jobs: a biography. New York City: Simon & Schuster.

    Google Scholar 

  • Kearney, C., Hisrich, R. D., & Roche, F. (2009). Public and private sector entrepreneurship: similarities, differences or a combination? Journal of Small Business and Enterprise Development, 16(1), 26–46.

    Google Scholar 

  • Kerr, W. R., & Nanda, R. (2007). Democratizing entry: Banking deregulations, financing constraints, and entrepreneurship. Journal of Financial Economics, 94(1), 124–149.

    Google Scholar 

  • Lee, N. (2017). Psychology and the geography of innovation. Economic Geography, 93(2), 106–130.

    Google Scholar 

  • Leung, K., Brew, F. P., Zhang, Z. X., & Zhang, Y. (2011). Harmony and conflict: a cross-cultural investigation in China and Australia. Journal of Cross-Cultural Psychology, 42(5), 795–816.

    Google Scholar 

  • Liao, J., & Wang, L. (2009). Face as a mediator of the relationship between material value and brand consciousness. Psychology & Marketing, 26(11), 987–1001.

    Google Scholar 

  • Liu, T. Q., & Stening, B. W. (2016). The contextualization and de-contextualization of Confucian morality: making Confucianism relevant to China’s contemporary challenges in business ethics. Asia Pacific Journal of Management, 33(3), 821–841.

    Google Scholar 

  • Liu, C. Y., Ye, L., & Feng, B. (2018). Migrant entrepreneurship in China: entrepreneurial transition and firm performance. Small Business Economics, 1–16.

  • Loyalka, M., & Dammon, A. (2006). Chinese welcome for entrepreneurs. Business Week Online, 1(/6), 1.

    Google Scholar 

  • Luo, B., & Chong, T. T. L. (2018). Regional differences in self-employment in China. Small Business Economics. https://doi.org/10.1007/s11187-018-0063-z.

    Google Scholar 

  • Mahbubani, K. (2008). The new Asian hemisphere. New York: PublicAffairs.

    Google Scholar 

  • McClelland, D. C. (1961). The achieving society. Princeton: Van Nostrand Reinhold.

    Google Scholar 

  • McCrae, R. R. (2001). Trait psychology and culture: exploring intercultural comparisons. Journal of Personality, 69(6), 819–846.

    Google Scholar 

  • Nunn, N., & Wantchekon, L. (2011). The slave trade and the origins of mistrust in Africa. American Economic Review, 101(7), 3221–3252.

    Google Scholar 

  • Obschonka, M. (2017). The quest for the entrepreneurial culture: psychological Big Data in entrepreneurship research. Current Opinion in Behavioral Sciences, 18, 69–74.

    Google Scholar 

  • Obschonka, M. (2018). The Industrial Revolution left psychological scars that can still be seen today. Harvard Business Review, March (26). https://hbr.org/2018/03/research-the-industrial-revolution-left-psychological-scars-that-can-still-be-seen-today

  • Obschonka, M., Goethner, M., Silbereisen, R. K., & Cantner, U. (2012). Social identity and the transition to entrepreneurship: the role of group identification with workplace peers. Journal of Vocational Behavior, 80(1), 137–147.

    Google Scholar 

  • Obschonka, M., Andersson, H., Silbereisen, R. K., & Sverke, M. (2013a). Rule-breaking, crime, and entrepreneurship: a replication and extension study with 37-year longitudinal data. Journal of Vocational Behavior, 83(3), 386–396.

    Google Scholar 

  • Obschonka, M., Schmitt-Rodermund, E., Silbereisen, R. K., Gosling, S. D., & Potter, J. (2013b). The regional distribution and correlates of an entrepreneurship-prone personality profile in the United States, Germany, and the United Kingdom: a socioecological perspective. Journal of Personality and Social Psychology, 105(1), 104–122.

    Google Scholar 

  • Obschonka, M., Stuetzer, M., Gosling, S. D., Rentfrow, P. J., Lamb, M. E., Potter, J., & Audretsch, D. B. (2015). Entrepreneurial regions: do macro-psychological cultural characteristics of regions help solve the “knowledge paradox” of economics? PLoS One, 10(6). https://doi.org/10.1371/journal.pone.0129332.

    Google Scholar 

  • Obschonka, M., Stuetzer, M., Audretsch, D. B., Rentfrow, P. J., Potter, J., & Gosling, S. D. (2016). Macropsychological factors predict regional economic resilience during a major economic crisis. Social Psychological and Personality Science, 7(2), 95–104.

    Google Scholar 

  • Opper, S., Nee, V., & Holm, H. J. (2017). Risk aversion and guanxi activities: a behavioral analysis of CEOs in China. Academy of Management Journal, 60(4), 1504–1530.

    Google Scholar 

  • Preis, T., Moat, H. S., & Stanley, H. E. (2013). Quantifying trading behavior in financial markets using Google Trends. Scientific Reports, 3(7446), 542–542.

    Google Scholar 

  • 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.

    Google Scholar 

  • Ralston, D. A., Egri, C. P., Stewart, S., Terpstra, R. H., & Kaicheng, Y. (1999). Doing business in the 21st century with the new generation of Chinese managers: a study of generational shifts in work values in China. Journal of International Business Studies, 30(2), 415–427.

    Google Scholar 

  • Rentfrow, P. J., Gosling, S. D., & Potter, J. (2008). A theory of the emergence, persistence, and expression of geographic variation in psychological characteristics. Perspectives on Psychological Science, 3(5), 339–369.

    Google Scholar 

  • Rentfrow, P. J., Gosling, S. D., Jokela, M., Stillwell, D. J., Kosinski, M., & Potter, J. (2013). Divided we stand: three psychological regions of the United States and their political, economic, social, and health correlates. Journal of Personality and Social Psychology, 105(6), 996.

    Google Scholar 

  • Sarasvathy, S. D. (2001). Causation and effectuation: toward a theoretical shift from economic inevitability to entrepreneurial contingency. Academy of Management Review, 26(2), 243–263.

    Google Scholar 

  • Saxenian, A. (1994). Regional advantage. Culture and competition in Silicon Valley and route 128. Cambridge: Harvard University Press.

    Google Scholar 

  • Schumpeter, J. A. (1934). The theory of economic development. Cambridge: Harvard University Press.

    Google Scholar 

  • Sternberg, R. (2009). Regional dimensions of entrepreneurship. Foundations and Trends in Entrepreneurship, 5(4), 211–340.

    Google Scholar 

  • Stuetzer, M., Obschonka, M., Audretsch, D. B., Wyrwich, M., Rentfrow, P. J., Coombes, M., et al. (2016). Industry structure, entrepreneurship, and culture: an empirical analysis using historical coalfields. European Economic Review, 86, 52–72.

    Google Scholar 

  • Stuetzer, M., Audretsch, D. B., Obschonka, M., Gosling, S. D., Rentfrow, P. J., & Potter, J. (2017). Entrepreneurship culture, knowledge spillovers and the growth of regions. Regional Studies, 1–11.

  • Su, Z. (2014). Chinese online unemployment-related searches and macroeconomic indicators. Frontiers of Economics in China, 9(4), 573–605.

    Google Scholar 

  • Talhelm, T., Zhang, X., Oishi, S., Shimin, C., Duan, D., Lan, X., & Kitayama, S. (2014). Large-scale psychological differences within China explained by rice versus wheat agriculture. Science, 344(6184), 603–608.

    Google Scholar 

  • Vandello, J. A., & Cohen, D. (1999). Patterns of individualism and collectivism across the United States. Journal of Personality & Social Psychology, 77(2), 279–292.

    Google Scholar 

  • Vaughan, L., & Chen, Y. (2015). Data mining from web search queries: a comparison of google trends and baidu index. Journal of the Association for Information Science and Technology, 66(1), 13–22.

    Google Scholar 

  • Vosen, S., & Schmidt, T. (2011). Forecasting private consumption: survey-based indicators vs. Google trends. Journal of Forecasting, 30(6), 565–578.

    Google Scholar 

  • Wang, C. L., Siu, N. Y., & Barnes, B. R. (2008). The significance of trust and renqing in the long-term orientation of Chinese business-to-business relationships. Industrial Marketing Management, 37(7), 819–824.

    Google Scholar 

  • Wiklund, J., Yu, W., Tucker, R., & Marino, L. D. (2017). ADHD, impulsivity and entrepreneurship. Journal of Business Venturing, 32(6), 627–656.

    Google Scholar 

  • Ying, Q., Kong, D., & Luo, D. (2015). Investor attention, institutional ownership, and stock return: empirical evidence from China. Emerging Markets Finance & Trade, 51(3), 672–685.

    Google Scholar 

  • Zhang, Z., & Arvey, R. D. (2009). Rule breaking in adolescence and entrepreneurial status: an empirical investigation. Journal of Business Venturing, 24(5), 436–447.

    Google Scholar 

  • Zhang, J. X., & Zhou, M. J. (2006). Searching for a personality structure of Chinese: a theoretical hypothesis of a six factor model of personality traits. Advances in Psychological Science, 14(4), 574–585.

    Google Scholar 

  • Zhang, S. S., Zhou, M. J., Chen, S., & Zhang, J. x. (2012). The relationships between indigenous personality traits and job performance: linear and nonlinear. Journal of Psychological Science, 35(6), 1440–1444.

    Google Scholar 

  • Zhou, M., Zhou, Y., Zhang, J., Obschonka, M., & Silbereisen, R. K. (2018). Person-city personality fit and entrepreneurial success: an explorative study in China. International Journal of Psychology. https://doi.org/10.1002/ijop.12451.

    Google Scholar 

Download references

Acknowledgements

The authors are grateful to Thomas Talhelm for helpful comments on an earlier version of this paper, and to Hannah Honecker and Forough Zarea Fazlelahi for research assistance.

Funding

This work was supported by the National Natural Science Foundation of China (Grant No. 71774156).

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Mingjie Zhou.

Appendix

Appendix

Table 5 Items measuring the interpersonal relatedness sub-facets

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Obschonka, M., Zhou, M., Zhou, Y. et al. “Confucian” traits, entrepreneurial personality, and entrepreneurship in China: a regional analysis. Small Bus Econ 53, 961–979 (2019). https://doi.org/10.1007/s11187-018-0103-8

Download citation

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s11187-018-0103-8

Keywords

JEL classifications

Navigation