Hostname: page-component-76fb5796d-45l2p Total loading time: 0 Render date: 2024-04-26T01:23:02.225Z Has data issue: false hasContentIssue false
  • English
  • Français

Value of faith: Religious entrepreneurs and corporate longevity

Published online by Cambridge University Press:  25 March 2019

Xingqiang Du ,
Quan Zeng Open the ORCID record for Quan Zeng [Opens in a new window] ,
Yingying Chang  and
Yingjie Du
Xingqiang Du
Affiliation:
School of Management, Xiamen University, Xiamen, Fujian 361005, China
Quan Zeng*
Affiliation:
School of Management, Xiamen University, Xiamen, Fujian 361005, China
Yingying Chang
Affiliation:
School of Business Administration, Jimei University, Xiamen, Fujian 361021, China
Yingjie Du
Affiliation:
School of Management, Shanghai University, Shanghai 200444, China
*
*Corresponding author. Email: xqduzeng@163.com
Get access Rights & Permissions [Opens in a new window]

Abstract

Using the data on the religious belief of entrepreneurs in Chinese family firms, this study shows that religious entrepreneurs significantly positively affect corporate longevity, echoing the view that religious entrepreneurs can obtain managerial skills and share managerial knowledge about corporate operation through the conduit of religious attendance, and thus firms with religious entrepreneurs are more long-lived. Moreover, the development of factor markets across different provinces in China reinforces this positive relation between religious entrepreneurs and corporate longevity. Furthermore, qualitatively similar results can be found from various robustness tests, and our conclusions still stand after controlling for the potential selection bias in the research sample. Lastly, after differentiating different religious beliefs, the positive relation between religious entrepreneurs and corporate longevity is only valid for Western religious beliefs (but not for Eastern religious beliefs), and the reinforced role of the development of factor markets only stands for Eastern religious beliefs.

Keywords

religious entrepreneurscorporate longevitythe development of factor marketsthe social capital theoryChinese family firms
Type
Research Article
Information
Journal of Management & Organization , Volume 28 , Issue 4 , July 2022 , pp. 849 - 887
Copyright
Copyright © Cambridge University Press and Australian and New Zealand Academy of Management 2019

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Aleksynska, M., & Chiswick, B. R. (2013). The determinants of religiosity among immigrants and the native born in Europe. Review of Economics of the Household, 11(4), 563–598.CrossRefGoogle Scholar
Argyle, M., & Beit-Hallahmi, B. (2014). The psychology of religious behavior, belief and experience. London: Routledge.Google Scholar
Aronoff, C. E., & Ward, J. L. (1995). Family-owned businesses: A thing of the past or a model for the future? Family Business Review, 8(2), 121–130.CrossRefGoogle Scholar
Baron, R. A., & Markman, G. D. (2000). Beyond social capital: How social skills can enhance entrepreneurs’ success. The Academy of Management Executive, 14(1), 106–116.Google Scholar
Barro, R. J., & McCleary, R. (2003). Religion and economic growth across countries. American Sociological Review, 68(5), 760–781.CrossRefGoogle Scholar
Bates, T. (1990). Entrepreneur human capital inputs and small business longevity. Review of Economics and Statistics, 72(4), 551–559.CrossRefGoogle Scholar
Bates, T. (1995). Analysis of survival rates among franchise and independent small business startups. Journal of Small Business Management, 33(2), 26–36.Google Scholar
Belsley, D. A. (1991). A guide to using the collinearity diagnostics. Computer Science in Economics and Management, 4(1), 33–50.Google Scholar
Belsley, D. A., Kuh, E., & Welsch, R. E. (1980). Regression diagnostics: Identifying influential observations and sources of collinearity. New York, USA: John Wiley and Sons.CrossRefGoogle Scholar
Bertrand, M., & Schoar, A. (2006). The role of family in family firms. Journal of Economic Perspectives, 20(2), 73–96.CrossRefGoogle Scholar
Cao, N. (2007). Christian entrepreneurs and the post-mao state: An ethnographic account of church-state relations in China's economic transition. Sociology of Religion, 68(1), 45–66.CrossRefGoogle Scholar
Cao, N. (2008). Boss christians: The business of religion in the “Wenzhou model” of Christian revival. The China Journal, 59, 63–87.CrossRefGoogle Scholar
Carlos, A. M., & Nicholas, S. (1996). Theory and history: Seventeenth-century joint-stock chartered trading companies. The Journal of Economic History, 56(4), 916–924.CrossRefGoogle Scholar
Carney, M., Gedajlovic, E., & Strike, V. M. (2014). Dead money: Inheritance law and the longevity of family firms. Entrepreneurship Theory and Practice, 38(6), 1261–1283.CrossRefGoogle Scholar
Casson, M., & Della Giusta, M. (2007). Entrepreneurship and social capital analysing the impact of social networks on entrepreneurial activity from a rational action perspective. International Small Business Journal, 25(3), 220–244.CrossRefGoogle Scholar
Chinese Private Economic Research Association (CPERA) (2011). Chinese family business report 2011 edition. Beijing, China: China CITIC Press.Google Scholar
Clark, A., & Lelkes, O. (2006). Deliver us from evil: Religion as insurance (No. 06/03). Working paper, Department of Economic Theory and Economic History of the University of Granada.Google Scholar
Cleveland, M., Laroche, M., & Hallab, R. (2013). Globalization, culture, religion, and values: Comparing consumption patterns of Lebanese Muslims and Christians. Journal of Business Research, 66(8), 958–967.CrossRefGoogle Scholar
Collins, R. (1999). Eastern religions. In Murray, M (Ed.) Reason for the Hope Within (pp. 182–216) Grand Rapids: Eerdmans.Google Scholar
Crittenden, W. F., Crittenden, V. L., & Hunt, T. G. (1988). Planning and stakeholder satisfaction in religious organizations. Nonprofit and Voluntary Sector Quarterly, 17(2), 60–73.Google Scholar
Dehejia, R. H., & Wahba, S. (2002). Propensity score-matching methods for nonexperimental causal studies. Review of Economics and Statistics, 84(1), 151–161.CrossRefGoogle Scholar
Delmar, F., & Shane, S. (2006). Does experience matter? The effect of founding team experience on the survival and sales of newly founded ventures. Strategic Organization, 4(3), 215–247.CrossRefGoogle Scholar
Dickson, P. H., & Weaver, K. M. (2008). The role of the institutional environment in determining firm orientations towards entrepreneurial behavior. International Entrepreneurship and Management Journal, 4(4), 467–483.CrossRefGoogle Scholar
Ding, Y., Zhang, H., & Zhang, J. (2008). The financial and operating performance of Chinese family-owned listed firms. Management International Review, 48(3), 297–318.Google Scholar
Du, X. (2013). Does religion matter to owner-manager agency costs? Evidence from China. Journal of Business Ethics, 118(2), 319–347.CrossRefGoogle Scholar
Du, X. (2014). Does religion mitigate tunneling? Evidence from Chinese Buddhism. Journal of Business Ethics, 125(2), 299–327.CrossRefGoogle Scholar
Du, X. (2015). Is corporate philanthropy used as environmental misconduct dressing? Evidence from Chinese family-owned firms. Journal of Business Ethics, 129(2), 341–361.CrossRefGoogle Scholar
Du, X. (2017). Religious belief, corporate philanthropy, and political involvement of entrepreneurs in Chinese family firms. Journal of Business Ethics, 142(2), 385–406.CrossRefGoogle Scholar
Dyer, W. G. (2006). Examining the “family effect” on firm performance. Family Business Review, 19(4), 253–273.CrossRefGoogle Scholar
Dyreng, S. D., Mayew, W. J., & Williams, C. D. (2012). Religious social norms and corporate financial reporting. Journal of Business Finance & Accounting, 39(7–8), 845–875.CrossRefGoogle Scholar
Elephant Magazine (EM) (2015) Why are religions so popular in China?. Retrieved August 11, 2015, from http://daxianggonghui.baijia.baidu.com/article/21124?qq-pf-to=pcqq.c2c.Google Scholar
El Ghoul, S., Guedhami, O., Ni, Y., Pittman, J., & Saadi, S. (2012). Does religion matter to equity pricing?. Journal of Business Ethics, 111(4), 491–518.CrossRefGoogle Scholar
Eng, I., & Lin, Y. M. (2002). Religious festivities, communal rivalry, and restructuring of authority relations in rural Chaozhou, Southeast China. The Journal of Asian Studies, 61(04), 1259–1285.CrossRefGoogle Scholar
Fahed-Sreih, J., & Djoundourian, S. (2006). Determinants of longevity and success in Lebanese family businesses: An exploratory study. Family Business Review, 19(3), 225–234.CrossRefGoogle Scholar
Fama, E. F. (1980). Agency problems and the theory of the firm. The Journal of Political Economy, 88(2), 288–307.CrossRefGoogle Scholar
Fama, E. F., & Jensen, M. C. (1983). Separation of ownership and control. Journal of Law and Economics, 26(2), 301–325.CrossRefGoogle Scholar
Fan, G., Wang., X. L., & Zhu, H. P. (2011). NERI index of marketization of China's provinces 2011 report. Beijing, China: Economics Science Press (in Chinese).Google Scholar
Fan, J. P., Wong, T. J., & Zhang, T. (2007). Politically connected CEOs, corporate governance, and post-IPO performance of China's newly partially privatized firms. Journal of Financial Economics, 84(2), 330–357.CrossRefGoogle Scholar
Fernando, M., & Jackson, B. (2006). The influence of religion-based workplace spirituality on business leaders’ decision-making: An inter-faith study. Journal of Management & Organization, 12(1), 23–39.CrossRefGoogle Scholar
Goossaert, V., & Palmer, D. A. (2011). The religious question in modern China. Chicago, USA: University of Chicago Press.CrossRefGoogle Scholar
Greenberg, A. (2000). The church and the revitalization of politics and community. Political Science Quarterly, 115(3), 377–394.CrossRefGoogle Scholar
Greene, W. H. (1990). Econometric analysis. New York, USA: Macmillan.Google Scholar
Groves, T., Hong, Y., McMillan, J., & Naughton, B. (1995). China's evolving managerial labor market. Journal of Political Economy, 103(4), 873–892.CrossRefGoogle Scholar
Harrison, J. S., & Wicks, A. C. (2013). Stakeholder theory, value, and firm performance. Business Ethics Quarterly, 23(1), 97–124.CrossRefGoogle Scholar
Herrmann, P., & Datta, D. K. (2006). CEO experiences: Effects on the choice of FDI entry mode. Journal of Management Studies, 43(4), 755–778.CrossRefGoogle Scholar
Hilary, G., & Hui, K. W. (2009). Does religion matter in corporate decision making in America? Journal of Financial Economics, 93(3), 455–473.CrossRefGoogle Scholar
Hill, C. W. (1990). Cooperation, opportunism, and the invisible hand: Implications for transaction cost theory. Academy of Management Review, 15(3), 500–513.CrossRefGoogle Scholar
Hill, J. S. (2007). Religion and the shaping of East Asian management styles: A conceptual examination. Journal of Asia-Pacific Business, 8(2), 59–88.CrossRefGoogle Scholar
Hofstede, G. (1984). Cultural dimensions in management and planning. Asia Pacific Journal of Management, 1(2), 81–99.CrossRefGoogle Scholar
Hogarth, R. M., Michaud, C., Doz, Y., & Van der Heyden, L. (1991). Longevity of business firms: A four-stage framework for analysis. Fontainebleau, France: INSEAD.Google Scholar
Honig, B. (1998). What determines success? Examining the human, financial, and social capital of Jamaican microentrepreneurs. Journal of Business Venturing, 13(5), 371–394.CrossRefGoogle Scholar
Huang, M.F. (2009). Blue book of the non-state-owned economy: Annual report of non-state-owned economy in China (No.6: 2008–2009). Beijing, China: Social Science Academic Press (in Chinese).Google Scholar
Huang, Y. H. (2000). The personal influence model and Gao guanxi in Taiwan Chinese public relations. Public Relations Review, 26(2), 219–236.CrossRefGoogle Scholar
Hull, B. B., & Bold, F. (1995). Preaching matters: Replication and extension. Journal of Economic Behavior & Organization, 27(1), 143–149.CrossRefGoogle Scholar
Hunt, S. (2000). The ‘New’ black pentecostal churches in Britain. In a paper presented at CESNUR 14th International Conference, Riga, Latvia, August 29–31.Google Scholar
Huselid, M. A., Jackson, S. E., & Schuler, R. S. (1997). Technical and strategic human resources management effectiveness as determinants of firm performance. Academy of Management Journal, 40(1), 171–188.Google Scholar
Iannaccone, L. R. (1998). Introduction to the economics of religion. Journal of Economic Literature, 36(3), 1465–1495.Google Scholar
Jefferson, G. H., & Rawski, T. G. (1994). How industrial reform worked in China: The role of innovation, competition and property rights (pp. 129–156). Washington, DC: World Bank. Retrieved August 11, 2015, from http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/1995/03/01/000009265_3970716143815/Rendered/PDF/multi0page.pdf.Google Scholar
Jiménez, M. C. R., Martos, M. C. V., & Jiménez, R. M. (2015). Organisational harmony as a value in family businesses and its influence on performance. Journal of Business Ethics, 126(2), 259–272.CrossRefGoogle Scholar
Kelley, J., & De Graaf, N. D. (1997). National context, parental socialization, and religious belief: Results from 15 nations. American Sociological Review, 62(4), 639–659.CrossRefGoogle Scholar
King, G., & Nielsen, R. (2016). Why propensity scores should not be used for matching. Working paper, Harvard University and MIT. Available at: http://gking.harvard.edu/files/gking/files/psnot.pdf.Google Scholar
King, G., Nielsen, R., Coberley, C., Pope, J. E., & Wells, A. (2011). Comparative effectiveness of matching methods for causal inference. Working paper, Harvard University. Available at: http://gking.harvard.edu/files/psparadox.pdf.Google Scholar
King, P. E., & Furrow, J. L. (2004). Religion as a resource for positive youth development: Religion, social capital, and moral outcomes. Developmental Psychology, 40(5), 703–713.CrossRefGoogle Scholar
King, R., & Peng, W. Q. (2013). The effect of industry characteristics on the control longevity of founding-family firms. Journal of Family Business Strategy, 4(4), 281–295.CrossRefGoogle Scholar
Lamoreaux, N. R. (1998). Partnerships, corporations, and the theory of the firm. American Economic Review, 88(2), 66–71.Google Scholar
Lang, L. H., & Stulz, R. M. (1994). Tobin's q, corporate diversification, and firm performance. Journal of Political Economy, 102(6), 1248–1280.Google Scholar
Leithart, P. J. (2014) China's religious boom. Retrieved August 11, 2015, from http://www.firstthings.com/blogs/leithart/2014/06/chinas-religious-boom.Google Scholar
Leonard, J. S. (1990). Executive pay and firm performance. Industrial and Labor Relations Review, 43(3), 13–29.CrossRefGoogle Scholar
Leung, B. (2000). Catholic bridging efforts with China. Religion, State & Society, 28(2), 185–195.CrossRefGoogle Scholar
Li, J., & Matlay, H. (2006). Chinese entrepreneurship and small business development: An overview and research agenda. Journal of Small Business and Enterprise Development, 13(2), 248–262.CrossRefGoogle Scholar
Magnusson, P., & Boggs, D. J. (2006). International experience and CEO selection: An empirical study. Journal of International Management, 12(1), 107–125.CrossRefGoogle Scholar
Martinelli, A. (2004). The social and institutional context of entrepreneurship. Crossroads of Entrepreneurship, 3, 53–73.Google Scholar
McGuire, S. T., Omer, T. C., & Sharp, N. Y. (2011). The impact of religion on financial reporting irregularities. The Accounting Review, 87(2), 645–673.CrossRefGoogle Scholar
Mersland, R., & Strøm, R. Ø. (2009). Performance and governance in microfinance institutions. Journal of Banking & Finance, 33(4), 662–669.CrossRefGoogle Scholar
Myers, S. (1996). An interactive model of religiosity inheritance: The importance of family context. American Sociological Review, 61(5), 858–866.CrossRefGoogle Scholar
Nafziger, E. W., & Terrell, D. (1996). Entrepreneurial human capital and the long-run survival of firms in India. World Development, 24(4), 689–696.CrossRefGoogle Scholar
North, D. C. (1990). Institutions, institutional change and economic performance. Cambridge: Cambridge University Press.CrossRefGoogle Scholar
Nwankwo, S., Gbadamosi, A., & Ojo, S. (2012). Religion, spirituality and entrepreneurship: The church as entrepreneurial space among British Africans. Society and Business Review, 7(2), 149–167.CrossRefGoogle Scholar
Oi, J. C., & Walder, A. G. (1999). Property rights and economic reform in China. Stanford, USA: Stanford University Press.CrossRefGoogle Scholar
Oliver, C. (1997). Sustainable competitive advantage: Combining institutional and resource-based views. Strategic Management Journal, 18(9), 697–713.3.0.CO;2-C>CrossRefGoogle Scholar
Osborne, R. D., & Cormack, R. J. (1986). Unemployment and religion in Northern Ireland. Economic and Social Review, 17(3), 215–225.Google Scholar
Parker, S., Peters, G. F., & Turetsky, H. F. (2005). Corporate governance factors and auditor going concern assessments. Review of Accounting and Finance, 4(3), 5–29.CrossRefGoogle Scholar
Pennings, J. M., Lee, K., & Van Witteloostuijn, A. (1998). Human capital, social capital, and firm dissolution. Academy of Management Journal, 41(4), 425–440.Google Scholar
Petersen, M. A. (2009). Estimating standard errors in finance panel data sets: Comparing approaches. Review of Financial Studies, 22(1), 435–480.CrossRefGoogle Scholar
Piao, M. (2010). Thriving in the new: Implication of exploration on organizational longevity. Journal of Management, 36(6), 1529–1554.CrossRefGoogle Scholar
Pio, E., & Syed, J. (2014). Sacred activism through seva and khidmat: Contextualising management and organisations in South Asia. Journal of Management & Organization, 20(5), 572–586.CrossRefGoogle Scholar
Pistrui, D., Huang, W., Oksoy, D., Jing, Z., & Welsch, H. (2001). Entrepreneurship in China: Characteristics, attributes, and family forces shaping the emerging private sector. Family Business Review, 14(2), 141–152.CrossRefGoogle Scholar
Podsakoff, P. M., & Todor, W. D. (1985). Relationships between leader reward and punishment behavior and group processes and productivity. Journal of Management, 11(1), 55–73.CrossRefGoogle Scholar
Potter, P. B. (2003). Belief in control: Regulation of religion in China. The China Quarterly, 174, 317–337.CrossRefGoogle Scholar
Putterman, L. (1995). The role of ownership and property rights in China's economic transition. The China Quarterly, 144, 1047–1064.CrossRefGoogle Scholar
Roccas, S. (2005). Religion and value systems. Journal of Social Issues, 61(4), 747–759.CrossRefGoogle Scholar
Rosenbaum, P. R., & Rubin, D. B. (1983). The central role of the propensity score in observational studies for causal effects. Biometrika, 70(1), 41–55.CrossRefGoogle Scholar
Schiff, M. (1992). Social capital, labor mobility, and welfare: The impact of uniting states. Rationality and Society, 4(2), 157–175.CrossRefGoogle Scholar
Schmitthoff, M. (1939). The origin of the joint-stock company. University of Toronto Law Journal, 3(1), 74–96.CrossRefGoogle Scholar
Smith, H., & Marranca, R. (2009). The world's religions. New York: Harper One.Google Scholar
Smith, M., Heady, R. B., Carson, P. P., & Carson, K. D. (2001). Do missions accomplish their missions? An exploratory analysis of mission statement content and organizational longevity. The Journal of Applied Management and Entrepreneurship, 6(1), 75–96.Google Scholar
State Administration for Religious Affairs of R. P. C. (SARA) (2015). A overview of religions in China. Retrieved August 11, 2015 from http://www.sara.gov.cn/zwgk/17839.htm.Google Scholar
Su, E., & Carney, M. (2013). Can China's family firms create intellectual capital?. Asia Pacific Journal of Management, 30(3), 657–675.CrossRefGoogle Scholar
Su, J., & He, J. (2010). Does giving lead to getting? Evidence from Chinese private enterprises. Journal of Business Ethics, 93(1), 73–90.CrossRefGoogle Scholar
Sun, Y. (2007). An investigation on the spirit life of contemporary Chinese people. Reference Data on Social Sciences Research, 27(7–8), 38–45 (in Chinese).Google Scholar
Tafel, H., & Turner, J. C. (1979). The social identity theory of intergroup behavior. In Worchel, S. & Austin, W. (Eds.), Psychology of intergroup relations (pp. 7–24). Chicago: Nelson Hall.Google Scholar
The Center on Religion and Chinese Society at Purdue University (CRCSPU) (2007). Chinese spirit life survey (CSLS). Retrieved August 11, 2015 from http://www.purdue.edu/crcs.Google Scholar
Thornhill, S., & Amit, R. (2003). Learning about failure: Bankruptcy, firm age, and the resource-based view. Organization Science, 14(5), 497–509.CrossRefGoogle Scholar
Timothy, D., & Olsen, D. (2006). Tourism, religion and spiritual journeys (Vol. 4). New York: Routledge.CrossRefGoogle Scholar
Turetsky, H. F., & McEwen, R. A. (2001). An empirical investigation of firm longevity: A model of the ex ante predictors of financial distress. Review of Quantitative Finance and Accounting, 16(4), 323–343.CrossRefGoogle Scholar
Uygur, S., Spence, L. J., Simpson, R., & Karakas, F. (2017). Work ethic, religion and moral energy: The case of Turkish SME owner-managers. International Journal of Human Resource Management, 28(8), 1212–1235.Google Scholar
van Driel, H., Volberda, H. W., & Eikelboom, S. (2004). Longevity in services: The case of the Dutch warehousing companies 1600–2000. ERIM Report Series Research in Management (ERS-2004-072-STR/ORG) Working paper, Erasmus University Rotterdam.Google Scholar
Vasconcelos, A. F. (2010). The effects of prayer on organizational life: A phenomenological study. Journal of Management & Organization, 16(3), 369–381.CrossRefGoogle Scholar
Walker, C. E. (1931). The history of the joint stock company. The Accounting Review, 6(2), 97–105.Google Scholar
Wang, J., & Coffey, B. S. (1992). Board composition and corporate philanthropy. Journal of Business Ethics, 11(10), 771–778.CrossRefGoogle Scholar
Weidenbaum, M. (1996). The Chinese family business enterprise. California Management Review, 38(4), 141–156.CrossRefGoogle Scholar
Welter, F., & Smallbone, D. (2011). Institutional perspectives on entrepreneurial behavior in challenging environments. Journal of Small Business Management, 49(1), 107–125.CrossRefGoogle Scholar
Williams, D., & Jones, O. (2010). Factors associated with longevity of small, family-owned firms. International Journal of Entrepreneurship, 14, 37–57.Google Scholar
Williamson, O. E. (1979). Transaction-cost economics: The governance of contractural relations. Journal of Law and Economics, 22(2), 233–261.CrossRefGoogle Scholar
Wong, Y. H., & Chan, R. Y. K. (1999). Relationship marketing in China: Guanxi, favouritism and adaptation. Journal of Business Ethics, 22(2), 107–118.CrossRefGoogle Scholar
Yamak, S., Ergur, A., Ünsal, A., & Özbilgin, S. U. M. (2015). Between a rock and a hard place: Corporate elites in the context of religion and secularism in Turkey. International Journal of Human Resource Management, 26(11), 1474–1496.Google Scholar
Yang, F. (2011). Religion in China: Survival and revival under communist rule. Oxford: Oxford University Press.CrossRefGoogle Scholar
Yu, L., Orazem, P. F., & Jolly, R. W. (2011). Why do rural firms live longer? American Journal of Agricultural Economics, 93(3), 669–688.CrossRefGoogle Scholar
Zhao, X. (2015). Review and prospect of the matters of Chinese business fellowship. Retrieved August 11, 2015, from http://www.shjdj.com/jidujiaoxinwen/qita/4859.1-tuanqi.html.Google Scholar
Zhou, W. (2013). Political connections and entrepreneurial investment: Evidence from China's transition economy. Journal of Business Venturing, 28(2), 299–315.CrossRefGoogle Scholar