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Agency Theory And Stewardship Theory Integrated, Expanded, And Bounded By Context: An Empirical Investigation Of Structure, Behavior, And Performance Within Family Firms, Kristen Joie Madison
Agency Theory And Stewardship Theory Integrated, Expanded, And Bounded By Context: An Empirical Investigation Of Structure, Behavior, And Performance Within Family Firms, Kristen Joie Madison
Doctoral Dissertations
Studies abound investigating whether agency or stewardship theory is more applicable within family firms. Both theories predict enhanced firm performance, but starkly contrast in behavioral assumptions and structural prescriptions. Agency theory assumes an economic model of man; agent behavior is based on self-interest and may conflict with the principal’s interest. Governance structures that control and monitor agents are prescribed to thwart opportunistic behavior and better align the goals of the principal and agent. Stewardship theory assumes a humanistic model of man; steward behavior is based on serving others and therefore will align with the principal’s interest. Governance structures that empower …