Supply chain representation on the board of directors and firm performance: A balance of relational rents and agency costs
Jordan M. Barker,
Christian Hofer,
David D. Dobrzykowski
Abstract:Appointing individuals drawn from suppliers and customers to a firm's board of directors is an increasingly popular practice that can enhance the interorganizational relationship and generate relational rents. Yet, such board members may act in the best interest of their primary employer rather than the shareholders of the firm whose board they serve on, thus creating potential agency conflicts. Drawing on the relational view and agency theory, we explore the tension between rent generation and agency costs an… Show more
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