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The Principal's Theory of Mind

Publication: ResearchWorking paper

Agency theory is one of the most important foundational theories in management research, but it rests on tenuous cognitive assumptions. We combine classical agency theory with a realistic theory of the intrinsically imperfect human potential for interpersonal sensemaking. This allows us to systematically show how the principal’s ability to mentalize with the agent influences value creation in principal-agent relations, and to link this to organizational sensemaking instruments.

Publication information

Original languageEnglish
Place of PublicationFrederiksberg
PublisherDjøf / Jurist- og Økonomforbundet
Number of pages46
ISBN (print)9788791815836
StatePublished - 4 Jan 2013
SeriesSMG Working Paper
Number1

ID: 38124477