The Principal's Theory of Mind

    Publikation: Working paperForskning

    40 Downloads (Pure)

    Abstrakt

    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.
    OriginalsprogEngelsk
    UdgivelsesstedFrederiksberg
    UdgiverInstitut for Strategic Management and Globalization
    Antal sider46
    ISBN (Trykt)9788791815836
    StatusUdgivet - jan. 2013
    NavnSMG Working Paper
    Nummer1/2013

    Emneord

    • Agency theory
    • Value creation
    • Mentalizing
    • Cognitive psychology
    • Reward management

    Citationsformater