Agency Theory

Abstract

In an agency relationship, one party acts on behalf of another. It is curious that a concept that could not be more profoundly sociological does not have a niche in the sociological literature. This essay begins with the economics paradigm of agency theory, which casts a very long shadow over the social sciences, and then traces how these ideas diffuse to and are transformed (if at all) in the scholarship produced in business schools, political science, law, and sociology. I cut a swathe through the social fabric where agency relationships are especially prevalent and examine some of the institutions, roles, forms of social organization, deviance, and strategies of social control that deliver agency and respond to its vulnerabilities, and I consider their impact. Finally, I suggest how sociology might make better use of and contribute to agency theory.

Cross-sectional survey of older patients’ views regarding multidisciplinary care for chronic conditions in general practice

“…In addition, the study has supplied data indicating conditions under which older patients' preferences for CDM may be met whilst providing improved efficiencies of care. Of interest, these findings were consistent with agency theory, a theoretical framework that has been extensively used in the economics (Shapiro 2005), health economics (Sekwat 2000;Schneider and Mathios 2006) and social sciences literature (Eisenhardt 1989). In an agency framework, it is anticipated that a patient would feel less risk where there is the involvement of a HP with whom they have a long-term relationship across all aspects of care as this optimises information symmetry and goal alignment in the care encounter (Donaldson 2001).…”

“…Agency theory deals with the so-called 'agency problem', which exists when one person (a principal) engages another (an agent) to act on their behalf (Eisenhardt 1989), such as in a patientÀHP relationship. In agency relationships it is held that risks arise when principals and agents have incomplete information concerning each other or have divergent goals (Shapiro 2005). Interpersonal continuity of care in health care agency relationships can be seen as a means by which patients (principals) can optimise shared knowledge and develop shared goals with their HPs (agents) (Donaldson 2001).…”

Flows, leaks and blockages in informational interventions: A field experimental study of Bangalore's water sector

“…In our specific case, we might have explored the incentives and sanctions in the system or whether valvemen faced conflicting mandates from different ''principals" (see Gailmard & Patty, 2012;Shapiro, 2005;Maynard-Moody & Musheno, 2012).…”

Key Performance Indicator Disclosures Through the Internet: Towards an Integrated Scoreboard

“…Broadly speaking, this theory has been incorporated in multiple scientific fields, particularly in accounting (Demski, 1980), economics (Spence and Zeckhouser, 1971), marketing (Basu et al, 1985), political science (Mitnick, 1986), finance (Fama, 1980;Fontrodona and Sison, 2006), behaviour and organisational culture (Eisenhardt, 1985;Kosnik, 1987;Kulik, 2005) and sociology (White, 1985;Shapiro, 2005). However, the controversy over its usefulness, applicability and validity remains relevant even today.…”