Studies on the implications of managerial discretion have mainly focused on the firm, executive or industry level attributes. Little work has tackled the national-level aspect of this construct and its potential implication on firm strategies. We seek to theoretically establish an association between the construct of managerial discretion and firm strategic orientation from a national-level. Our theoretical analysis strongly suggests that the degree of managerial discretion available to executives in each country could have a strong influence on companies’ competitive strategy. We contribute to the strategic management field and the discretion literature by uncovering new national-level implications.