Competitiveness and managerial discretion: an empirical investigation at the national-level

Christodoulou, I., Haj Youssef, M. and Hussein, H. 2019. Competitiveness and managerial discretion: an empirical investigation at the national-level. Competitiveness Review. 29 (2), pp. 181-203. https://doi.org/10.1108/CR-01-2017-0011

TitleCompetitiveness and managerial discretion: an empirical investigation at the national-level
TypeJournal article
AuthorsChristodoulou, I., Haj Youssef, M. and Hussein, H.
Abstract

Purpose
The purpose of this paper is to examine the national-level predictors of country competitiveness using the concept of managerial discretion. The objective is to empirically link the strategic management discipline particularly the upper echelon theory to the concept of country performance measured by competitiveness.

Design/methodology/approach
This paper tests the proposed relationship between managerial discretion and country competitiveness using a sample of 18 countries from 6 different regional clusters. Discretion scores are generated from survey responses of prominent senior management consultants, while country competitiveness is measured via the Global Competitiveness Index developed by the World Economic Forum. A multi-level regression analysis on the panel data set spanning 10 years of national competitiveness levels is used to empirically demonstrate the association between managerial discretion and country competitiveness.

Findings
The authors show that managerial discretion is a direct predictor of national competitiveness through its ability to provide CEOs with a wider array of actions to innovate and enhance firm performance which will ultimately contribute to country competitiveness.

Practical implications
The positive influence of managerial discretion on country competitiveness provide an interesting framework to examine the influence of firms over public policy-making. Additionally, with businesses becoming increasingly globalized, the profile of countries becomes of a great importance and can become a tool for corporate strategic decisions, such as: market entry strategies.

Originality/value
By linking the well-known term of competitiveness to the concept of managerial discretion, the authors provide a totally new approach to assess country performance. Additionally, this paper contributes to the growing literature of managerial discretion by discovering new national-level consequences.

JournalCompetitiveness Review
Journal citation29 (2), pp. 181-203
ISSN1059-5422
Year2019
PublisherEmerald Publishing Limited
Accepted author manuscript
File Access Level
Open (open metadata and files)
Digital Object Identifier (DOI)https://doi.org/10.1108/CR-01-2017-0011
Web address (URL)https://www.emerald.com/insight/content/doi/10.1108/CR-01-2017-0011/full/html
Publication dates
Published18 Mar 2019

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