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Principal-Agency Relations in Organizational Networks

Author

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  • Emina Katica

    (Hogeschool-Universiteit van Brussel (HUB), Brussels, Belgium)

  • Semra Boga

    (Istanbul University, Istanbul, Turkey)

Abstract

The authors introduce the application of agency theory within organizational networks in order to offer some new insights for organizational and economic sciences. Previous research has neglected the presence of agency problem in these relatively new structures in favor of examining the nature of principal-agent relationship from behavioral and economic side. They emphasize the constraints such relationship can cause in networks and offer adequate propositions to solve it, referring to present solutions in agency theory. A set of new implications was derived from the theory as well as from case study about impact of agency problem on different network types. Case study method was chosen due to the lack of secondary data on this subject. A network was chosen and studied through interviews, observation, and field reports. This paper achieves originality with the fact that such a study of the two theories hasn't still been made. Therefore, the added value of this paper is in the common application of the two theories within a single case, and in the implications retrieved from it.

Suggested Citation

  • Emina Katica & Semra Boga, 2016. "Principal-Agency Relations in Organizational Networks," International Journal of Strategic Decision Sciences (IJSDS), IGI Global, vol. 7(4), pages 35-50, October.
    • Handle: RePEc:igg:jsds00:v:7:y:2016:i:4:p:35-50
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