Agency Theory: An Assessment and 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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Principal-agent theory suggests that LHTAUs might not be protected against influences.
“However, insights from the principal-agent (or agency) theory[1] suggest that LHTAUs might not be protected against influences.”
From Health technology assessments conducted in health care facilities: A strategic practice? Findings from a content analysis of HTA reports (2017) · cites this paper as [1]
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- Authors
- Eisenhardt, K. M.
- Affiliations
- Stanford University (US)
- Corresponding author
- Eisenhardt, Kathleen M.
- Venue
- The Academy of Management Review
- Publisher
- Academy of Management
- 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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