How Formal and Informal Institutions of Middle Eastern Countries Influence Managerial Discretion: An Empirical Investigation

Managerial discretion is the focal theme bridging the clash between two schools of thoughts; whether executives have greater influence on their firms’ outcomes or other factors restrain their actions (Hambrick & Finkelstein, 1987). It is argued that constraints come from inertial, normative and environmental forces (e.g. DiMaggio & Powell, 1983). Of these restraints is the institutional environment in which a firm is headquartered. Our paper falls within this research stream and provides an extension for Crossland and Hambrick (2007, 2011) work. We investigate the national level of discretion in new cross-cultural contexts, provide deeper understanding of its concept, and shed the light on undiscovered discretion’s antecedents and consequences. We adopt a quantitative approach in which questionnaires represent our data collection instrument. We anticipate that in high discretion countries firms tend to follow what Miles & Snow (1978) labeled ‘Prospector’ strategy as opposed to low discretion countries in which firms incline to implement a ‘Defender’ strategy.

Managerial Discretion in the Arab World: New National-Level Antecedents

Based on a sample of six Arabian countries, our study examines the effect of cultural practices on CEO discretion. Using a panel of senior 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. We empirically demonstrate that power distance, future and performance orientation along with gender egalitarianism and assertiveness has 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. Finally, we find new national-level antecedents of managerial discretion that haven’t been considered in earlier studies.

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

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.

Hierarchical structures: conducive or barrier to knowledge management?

This study examines managers‟ perceptions of Knowledge Management (KM) prior to implementation of KM-systems in a global insurance company and investigates whether Hierarchical structures are conducive to KM. Mixed methods are used, combining large scale surveying and case study using content analysis to organize the data into themes that provide the basis for arguments. Evidence suggests that managers strongly align their perception of KM with communication. Despite a multi-layered, hierarchical structure and strong middle management presence, organizational structure was not viewed as an issue. These factors are usually barriers to communication and organizational flexibility, yet managers believe that they may not inhibit KM becoming fully embedded. This evidence is contradicted by the results of a global KM study where silos, stovepipe and hierarchical structures were commonly cited as barriers. This contributes to the understanding of managerial mis-conceptions of knowledge as opposed to communication, and how organizations effectively share knowledge.

Examining Chinese Tourists’ Nature-based Tourism Participantion Behavior: Incorporating Environmental Concern into a Constraint-Negotiation Modela

Finding the balance between economic development and preservation of the natural environment is a challenging yet important task. This is a particularly pressing issue in the case of China, as it is the largest and fastest-growing market for tourism. The purpose of this research is to examine Chinese tourists’ participation in nature-based, tourism activities by incorporating tourists’ environmental concern, measured by a revised New Environmental Paradigm (NEP) scale, into a tourism constraint-negotiation model. The responses of 409 Chinese tourists show environmental concern will positively affect tourists’ motivation, which, in turn, will affect their negotiation strategy and ultimately their participation behavior. The theoretical and managerial implications of this study are discussed in the context of the tourism literature.

Rethinking gossip and scandal in healthcare organizations

Purpose – The purpose of this viewpoint paper is to argue that gossip is a neglected aspect of organizational communication and knowledge, and an under-used management resource. Design/methodology/approach – The paper challenges mainstream managerial assumptions that gossip is trivial or tainted talk which should be discouraged in the workplace. Instead, gossip is re-framed at an organizational level of analysis, which provides the opportunity for relational knowledge about systemic failure and poor practice in healthcare to surface. Findings – Rather than simply viewing gossip as an individual behaviour and interpersonal process, it is claimed that organizational gossip is also a valuable early warning indicator of risk and failure in healthcare systems. There is potentially significant value in re-framing gossip as an aspect of organizational communication and knowledge. If attended to (rather than neglected or silenced) gossip can provide fresh insights into professional practice, decision-making and relational leadership. Originality/value – This paper offers a provocative challenge to mainstream health organization and management thinking about gossip in the workplace. It offers new ways of thinking to promote patient safety, and prevent the scandals that have plagued healthcare organizations in recent years.