Managerial Discretion And Performance In China: Towards Resolving The Discretion Puzzle For Chinese Companies And Multinationals,Used

Managerial Discretion And Performance In China: Towards Resolving The Discretion Puzzle For Chinese Companies And Multinationals,Used

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The theoretical and empirical literature to date has fallen short of reaching a consensus as to whether granting more managerial discretion to managers tends to enhance, not alter or diminish organizational performance (the discretion puzzle). This book aims to build a bridge between these contradictory results by synthesising principalagent theory, stewardship theory, and managerial discretion theory into a new empiricallyvalidated model. Using a representative sample of 'doubleblind' interviews with managers of 467 firms in China and applying partial least squares path modelling (PLS), the study identifies a potential cause of the discretion puzzle: the failure of the extant literature to account for granularity in the way that managers use their discretion. This generates farreaching implications for theoretical and empirical research as well as practical recommendations for managing managers in multinationals and Chinese companies.

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