Cross-National Differences in Managerial Discretion: Insights from the Middle East

Haj Youssef, M. and Christodoulou, I. 2016. Cross-National Differences in Managerial Discretion: Insights from the Middle East. British Academy of Management 2016: Thriving in Turbulent Times. Newcastle University, Newcastle 06 - 08 Sep 2016 British Academy of Management.

TitleCross-National Differences in Managerial Discretion: Insights from the Middle East
AuthorsHaj Youssef, M. and Christodoulou, I.
TypeConference paper
Abstract

Our study examines the effect of cultural practices on CEO discretion across six Middle Eastern countries. Using a panel of senior management consultants, we extend the national-level framework of managerial discretion and find that an encompassing array of cultural practices play a crucial role in shaping the degree of discretion provided to CEOs’ of public firms headquartered in these countries. We empirically demonstrate that power distance, future and performance orientation along with gender egalitarianism and assertiveness have positive relationships with managerial discretion. However, institutional collectivism, uncertainty avoidance and humane orientation negatively affect the degree of discretion provided to CEOs. As such, our results indicate that executives are able to take idiosyncratic and bold actions to the extent to which the cultural environment allows them to do so. As such, we contribute to the strategic leadership literature by finding new national-level antecedents of managerial discretion that haven’t been considered in earlier studies and confirm the context dependency of the discretion construct.

KeywordsManagerial Discretion, Cross-National, Middle East, Culture
Year2016
ConferenceBritish Academy of Management 2016: Thriving in Turbulent Times
PublisherBritish Academy of Management

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