The Role of Perceived Managerial Discretion on Strategy Implementation and Its Implications on Organizational Performance: A Conceptual Model

摘要

The rapidly changing and disruptive environment makes the business competition more hypercompetitive. The fundamental challenge that companies often face is not in the strategic planning process, but rather on how to ensure the formulated strategy can be well-implemented. Currently, the literature is still dominated by theories and practical advice on planning and strategy formulation, and there is only limited studies on the role of discretion on strategy implementation. Therefore, this study aimed to find out what is the role of perceived managerial discretion in the process of strategy implementation and its implications on organization performance. By reviewing the literatures, this study examined whether task environment, organizational agility and cognitive complexity influence the managerial discretion, and whether strategy implementation mediates perceived discretion of middle manager and organization performance. This paper presented a proposed research model, four propositions that need to empirically be tested, proposed research method, and a conclusion.