Impact of Senior Management's Sources of Power on The Strategic Choice: A Case Study of The Top Management of Royal Jordanian Airlines-Plc

Abstract

This study investigates the impact of senior management’s sources of power on strategic choice in Royal Jordanian Airlines-PLC. It adopts a qualitative case study approach, using in-depth interviews and document analysis to collect data from senior managers. It also employs descriptive statistics to analyze the data.

The study identifies four power sources: structural strength, ownership, experience, and prestige. It analyzes how these power sources interact and influence strategic choice processes and outcomes. It examines three types of strategic choices: cost leadership, differentiation, and focus.

The findings reveal that structural strength is a weak power source due to needing more specific skills and talents for work success. Ownership is also a common power source, as the management has no ownership stake in the company. Experience is a vital power source, enabling managers to use and manage the company's finances effectively. Prestige is another influential power source as it enhances the managers' reputation and credibility.

The study concludes that senior management’s power sources significantly impact strategic choice in Royal Jordanian Airlines-PLC. It recommends that managers should align their strategic decisions with the company's future goals, recognize that differentiation does not mean competing in all aspects, and foster a culture of innovation and creativity among employees.