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.

Understanding the Effect of Television Advertising on Women's Attitudes and Purchase Intentions Towards Beer: A Study of Three Major Brands.

Abstract Purpose of Paper: The market for beer in the UK is now mature and sales have been stable at around £16bn for about ten years (Mintel 2014). More recently, there have been changes in the market as consumers have switched from bigger mainstream brands to a growing number of smaller craft beers. However, in order to grow further significantly, the industry needs to explore new market segments and find new consumers for beer. So far, it is estimated that only 1.3m women in the UK drink beer (O'Reilly, 2014; Mail Online, 2015). Women are therefore an underexplored segment and present the main growth opportunity for beer drinking in the UK. However, most beer television advertising has traditionally been aimed at the male audience and there have been suggestions that some of this advertising has been seen as unpopular with or even insulting to women (Jackson, 2013; Zwarun et al., 2006). The Chief Executive of major brewer SAB Miller, which owns the Foster's brand, has recently written that, 'We have to acknowledge that core lager advertising, for many years, was either dismissive of, or insulting to, women.' (Shubber, 2015). If women are to be the new consumers and the future target for beer advertising, there is therefore a significant gap in the knowledge and literature concerned with how women differ from men in responding to the television advertising produced by beer brands and it is important that this gap in knowledge is addressed. The purpose of this paper is therefore to explore the effect of the television advertising of the three top selling UK beer brands on women's attitudes and purchase intentions towards those brands. More specifically, the objectives are: 1) To gain an understanding of how female consumers respond to existing beer television advertising, specifically in terms of the ‘likeability’ of the content of TV commercials produced by the three leading UK beer brands among female consumers. 2) To examine the effect of the rational and emotional content, including the use of humour, in television commercials produced by the three leading UK beer brands on the attitudes of female consumers towards those brands. 3) To explore in-depth female consumer attitudes towards the content (message cues and symbolism) of the television commercials produced by the three leading beer brands in the UK and their effect on subsequent purchase intentions for each brand.