•  
  •  

Home > JOURNAL > Vol. 12 (2023) > Number 1

 

Abstract

This conceptual study aims to enhance the understanding of how a manager’s cognitive capabilities (mental level) that underpin his dynamic capabilities (behaviour level) may be improved by practising Confucian virtues in the decision-making process. Dynamic capabilities refer to the manner with which managers create, extend, and modify the ways in which firms conduct business. The literature on the cognitive underpinning of dynamic capabilities of managers is focused mainly on the Western perspective of rational thinking and privilege variance-based understanding, with limited attention to the interaction between cognition and emotion, and insufficient attention to factors that guide a manager’s thoughts and actions. A key lesson of Confucian teachings is to instil proper individual behaviour and its core virtues call for the consistency between words and action. This paper argues that the core Confucian virtues of rén (仁) or benevolence may enhance individual managers’ cognitive capabilities for sensing new business opportunities, the core Confucian virtues of zhì (智) or wisdom may enhance individual managers’ cognitive capabilities for seizing business opportunities, and the core Confucian virtues of lǐ (礼) or propriety may enhance individual managers’ cognitive capabilities for transforming firms’ assets. To increase process-based understanding, three process frameworks are proposed to explain how the virtues of rén, zhì and lǐ may improve these managers’ mental abilities. Lessons drawn from the experience of successful Chinese entrepreneurial managers indicate how particular Confucian virtues could sharpen the mental abilities of managers, distinguish individual managers’ dynamic capabilities, give rise to strategic changes, and improve their organisational performance in a highly volatile work environment. The process frameworks and entrepreneurial experience increase understanding of the origin of firm performance differences by tracing and presenting how the difference in individual managers’ cognitive capabilities may emerge. This study lacks empirical support to increase the credibility of the three process-oriented conceptual framework, which may be validated and enriched by further case study research. Besides, this study focuses on Confucian virtues. However, it offers little analysis of the fact that it needs the support of learning. Further research is needed to explore how Confucian learning may mitigate this weakness for a flawless state of virtue.

Download

Share

COinS