Managerial Discretion and Performance in China

Towards Resolving the Discretion Puzzle for Chinese Companies and Multinationals

  • Hagen Wülferth

Part of the Contributions to Management Science book series (MANAGEMENT SC.)

Table of contents

  1. Front Matter
    Pages i-xxiii
  2. Hagen Wülferth
    Pages 1-22
  3. Hagen Wülferth
    Pages 23-142
  4. Hagen Wülferth
    Pages 143-171
  5. Hagen Wülferth
    Pages 173-255
  6. Hagen Wülferth
    Pages 369-430
  7. Hagen Wülferth
    Pages 431-508
  8. Back Matter
    Pages 509-534

About this book


​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 organisational performance (the discretion puzzle). This book aims to build a bridge between these contradictory results by synthesising principal-agent theory, stewardship theory, and managerial discretion theory into a new empirically-validated model. Using a representative sample of 'double-blind' 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 far-reaching implications for theoretical and empirical research as well as practical recommendations for managing managers in multinationals and Chinese companies.


China Managerial Discretion Partial Least Squares Path Modelling (PLS) Principal-Agent Theory Stewardship Theory

Authors and affiliations

  • Hagen Wülferth
    • 1
  1. 1.McKinsey & Company, Inc.BeijingChina, People's Republic

Bibliographic information

  • DOI
  • Copyright Information Springer-Verlag Berlin Heidelberg 2013
  • Publisher Name Physica, Berlin, Heidelberg
  • eBook Packages Business and Economics
  • Print ISBN 978-3-642-35836-4
  • Online ISBN 978-3-642-35837-1
  • Series Print ISSN 1431-1941
  • Buy this book on publisher's site
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