Cited by 13,338Outsourcing and Supply Chain ManagementCorporate Finance and GovernanceManagement Theory and Practice

Agency Theory: An Assessment and Review

Eisenhardt, Kathleen M.·1989·The Academy of Management Review

Abstract

Agency theory is an important, yet controversial, theory. This paper reviews agency theory, its contributions to organization theory, and the extant empirical work and develops testable propositions. The conclusions are that agency theory (a) offers unique insight into information systems, outcome uncertainty, incentives, and risk and (b) is an empirically valid perspective, particularly when coupled with complementary perspectives. The principal recommendation is to incorporate an agency perspective in studies of the many problems having a cooperative structure.

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Authors
Eisenhardt, K. M.
Affiliations
Stanford University (US)
Corresponding author
Eisenhardt, Kathleen M.
Venue
The Academy of Management Review
Published
1989-01
Volume
14
Issue
1
Pages
57
ISSN
0363-7425 (ISSN-L)
OpenAlex
W2095299437
Cited by
13,338
References
1
Citations by year
2026: 526 · 2025: 571 · 2024: 634 · 2023: 747 · 2022: 661 · 2021: 708 · 2020: 760 · 2019: 720 · 2018: 678 · 2017: 674 · 2016: 600 · 2015: 638 · 2014: 705 · 2013: 595 · 2012: 548
FWCI
76.20
Type
journal article
Language
en
Open access
closed
Locations
Academy of Management Review (publishedVersion)
Topics
  • Social Sciences › Business, Management and Accounting › Management Information Systems › Outsourcing and Supply Chain Management
  • Social Sciences › Business, Management and Accounting › Accounting › Corporate Finance and Governance
  • Social Sciences › Business, Management and Accounting › Organizational Behavior and Human Resource Management › Management Theory and Practice
Keywords
agency theory, principal-agent relationship, information systems, outcome uncertainty, incentives, risk, cooperative structure, organizational theory

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