What are the forces that influence strategic managerial decisions in the contextof economic transition? In this paper, we analyse how strategic and governanceforces influence the degree of discretion perceived by managers operating in thecontext of the transition economy of Russia. An exploratory case study providesinsights about the managerial decision-making process in a transition economythrough the exploration of context-specific factors that shape the perceived degreeof managerial discretion. The findings of the paper redefine the concept,indicating the existence of a relationship between strategic and governanceforces and their joint influence on managerial discretion. Our results provide anumber of practical and theoretical implications for the managerial decisionmakingprocess in Eastern Europe.