Figure 1.
The matrix presents environmental discretion on the vertical axis and chief executive officer enacted discretion on the horizontal axis. When both discretion levels are high, the condition is alignment, representing strong strategic fit. When environmental discretion is high but chief executive officer discretion is low, the situation is described as unused potential. When both discretion levels are low, alignment occurs again, reflecting consistency under constraints. When environmental discretion is low but chief executive officer discretion is high, the outcome is a collision course, indicating potential conflict or misalignment between executive decisions and environmental limitations.Hybrid discretion framework: environmental and enacted managerial discretion
Source: Authors’ own creation