@techreport{01525c9e5a8542a1a34b52ab29770ab1,
title = "The Principal's Theory of Mind",
abstract = "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{\textquoteright}s ability to mentalize with the agent influences value creation in principal-agent relations, and to link this to organizational sensemaking instruments.",
keywords = "Agency theory, Value creation, Mentalizing, Cognitive psychology, Reward management, Agency theory, Value creation, Mentalizing, Cognitive psychology, Reward management",
author = "Foss, {Nicolai J.} and Diego Stea",
year = "2013",
month = jan,
language = "English",
isbn = "9788791815836",
series = "SMG Working Paper",
publisher = "Institut for Strategic Management and Globalization",
number = "1/2013",
address = "Denmark",
type = "WorkingPaper",
institution = "Institut for Strategic Management and Globalization",
}