Strategic leadership in action: the impact of managerial discretion on competitive advantage

Purpose The purpose of this study is to consider the potential influence of managerial discretion on competitive performance, how it may affect strategic orientations such as customer and competitor emphasis, and how it might be utilized under certain conditions to enhance results. Design/methodology/approach This study investigates the relationships among managerial discretion, strategic leadership and competitive performance, using survey data collected in 2023 from 361 firms operating in the Thrace region of Turkey. To test the proposed hypotheses, partial least squares structural equation modeling and correlation analysis were employed. Findings The study demonstrates that effective managerial discretion plays a pivotal role in enhancing organizational responsiveness and competitive advantage, with these outcomes being shaped by organizational culture, leadership styles and external market conditions. Practical implications Organizations are urged to develop frameworks that facilitate managerial discretion, allowing leaders to exercise it in ways consistent with strategic objectives. Even when strategic decisions are efficiently implemented and enhance strategic performance, internal processes may still be affected in diverse ways. Originality/value This research enhances the current literature by offering empirical data about the strategic significance of managerial discretion in decision-making processes. It underscores the necessity for organizations to cultivate an atmosphere that enables leaders to exercise their discretion effectively, hence augmenting overall competitive advantage and sustainability.