They are the factors affecting to the level of managerial discretion, and by the end to be good or bad outcome for the firm. Factors include the product differentiability, market growth, industry structure, quasi-legal constraints, and powerful outside forces. Each factor has been proven that influence the level, and to give inside how to help bring higher managerial discretion. For example, a firm has product differentiability promote the latitude of managerial action. While product portfolios are large, it expands the capability of managers, they have higher chance to meet customers’ need. As in paint industry, if a company decides only to produce interior paint, it automatically drops its chance on exterior paint market. Hence, limit the action of manager whereas they can do more. Another factor promotes high managerial discretion will be the market growth, “increasing the number of resources and opportunities available within a market as well as an entrepreneurial mode of action”
They are the factors affecting to the level of managerial discretion, and by the end to be good or bad outcome for the firm. Factors include the product differentiability, market growth, industry structure, quasi-legal constraints, and powerful outside forces. Each factor has been proven that influence the level, and to give inside how to help bring higher managerial discretion. For example, a firm has product differentiability promote the latitude of managerial action. While product portfolios are large, it expands the capability of managers, they have higher chance to meet customers’ need. As in paint industry, if a company decides only to produce interior paint, it automatically drops its chance on exterior paint market. Hence, limit the action of manager whereas they can do more. Another factor promotes high managerial discretion will be the market growth, “increasing the number of resources and opportunities available within a market as well as an entrepreneurial mode of action”