This conceptual paper is focusing on the dynamic nature of managerial discretion within the context of economic transition. The concept of managerial discretion is discussed in two diverse streams of literature. From the perspective of strategic management research, managerial discretion refers to the locus of managerial control, while the corporate governance research emphasizes control over corporation focusing on minimizing the discretionary power of the management team. This research attempts to highlight the complementarity of the two diverging perspectives. The paradox between managerial decision-making freedom and control is analyzed using example of economic transition. It is being argued that the presence of a dynamic institutional change characterizing the early stages of economic transition may assume the presence of higher degree of managerial freedom while the later stages of economic transition require more formalized mechanisms of control thereby limiting the degree of management discretionary power. As the level of environmental uncertainly is gradually decreasing during the process of economic transition the as institutional environment becomes more stable which, in turn, can lead to the establishment and formalization of control mechanisms. The methodological approach utilized in this study is a conceptual analysis of the previous research on managerial discretion applying institutional, corporate governance and strategic management research perspectives. A theoretical model uniting both corporate governance and strategic management perspectives on managerial discretion was developed. The institutional theory was applied to explain the complementarily of the two main perspectives, particularly within the context of institutional transition. Suggested directions for future research include empirical testing of changes in the level of the TMT discretion along the multiple stages of transition process and further development of interaction effects between different levels of the TMT discretion. 

What are the forces that influence strategic managerial decisions in the context of economic transition? In this paper, we analyse how strategic and governance forces influence the degree of discretion perceived by managers operating in the context of the transition economy of Russia. An exploratory case study provides insights about the managerial decision-making process in a transition economy through the exploration of context-specific factors that shape the perceived degree of managerial discretion. The findings of the paper redefine the concept, indicating the existence of a relationship between strategic and governance forces and their joint influence on managerial discretion. Our results provide a number of practical and theoretical implications for the managerial decisionmaking process in Eastern Europe.

Welche Kräfte beeinflussen strategische Managemententscheidungen im Kontext wirtschaftlicher Übergangsprozesse? In diesem Artikel analysieren wir den Einfluss strategischer und steuernder Kräfte auf den Ermessenspielraum, der von den Managern, die im Rahmen der russischen Transformationswirtschaft operieren, wahrgenommen wird. Eine explorative Fallstudie liefert Erkenntnisse über den Führungsentscheidungsprozess in einer Transformationswirtschaft, indem kontextspezifischen Faktoren, die den wahrgenommenen Grad des Führungseinflusses gestalten, untersucht werden. Durch die Ergebnisse des Artikels wird das Konzept neu definiert, indem die Existenz eines Zusammenhangs zwischen strategischen und steuernden Kräften und deren gemeinsamen Effekt auf den Führungseinfluss aufgezeigt werden. Unsere Ergebnisse liefern eine Reihe praktischer und theoretischer Implikationen für den Führungsentscheidungsprozess in Osteuropa.