Phillip E. Davis

Agency theory: the times, they are a-changin’

Purpose – Theories develop over time and are influenced by both events and people. Looking primarily at the applications between contracting principal-agent relationships, the purpose of this paper is to explore how agency theory emerged from a number of economic and social developments. In doing so, the authors explain how this once dominant theory comes up short regarding varying realms of entrepreneurship as well as with multiple modern business phenomena. Design/methodology/approach – The authors first present a brief overview of agency theory. Second, the authors identify major events and people and address how they impacted the development of agency theory. Third, the authors provide insights on agency theory across three contexts (strategic entrepreneurship, social entrepreneurship, and family business). Implications, limitations, and future research directions are then offered. Findings – The authors provide a deeper understanding of agency theory, thus broadening its underpinnings and enabling re...

Agency theory: background and epistemology

Purpose By revisiting the agency theory literature, this paper aims to both incrementally advance historical viewpoints and reveal four prominent influences on agency theory: Weber and Simon, The Great Depression, Cooperation and the Chicago School. This is critical given that understanding the history behind the authors’ major theoretical lenses is fundamental to using these theories to explain various phenomena. Design/methodology/approach Drawing on a plethora of archival sources and following the influence-mapping approach used by other management history scholars, this manuscript synthesizes historical accounts and archival information to provide a clearer picture of the major historical influences in the formation of agency theory. Findings We shed light on four areas related to management history that helped propel agency theory. Whereas past scholarship has not recognised them as influencers, we find and show how the industrial revolution, unionization, the stock exchange and other management approaches all played a role in the development of agency theory’s core tenants. Originality/value We extend upon the influential people and events that shaped agency theory, thus providing a fuller understanding of the theory’s usefulness. Moreover, we fill in gaps enabling scholars to better understand the context in which the core tenants of agency theory were developed.

Can Women Entrepreneurs Plan to Prosper? Exploring the Role of Gender as a Moderator of the Planning-Performance Relationship

Women entrepreneurs have long been argued to suffer from disadvantages in initial resource stock, which makes it difficult to establish and maintain a sustainable competitive advantage. Prior work suggests that planning may assist in overcoming these disparities; however, few studies have examined these relationships while considering context. We explore the role of strategic business planning activities on entrepreneurial firm performance and whether such planning activities yield greater benefit for women than men. We find that business planning provides greater performance benefits to women, which we argue may give women an opportunity to compensate for initial resource disadvantages.