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.
|Place of Publication||Frederiksberg|
|Number of pages||46|
|Publication status||Published - 4 Jan 2013|
|Series||SMG Working Paper|