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Theories: 2


Agency Theory

Agency theory explains how contracts, incentives, and monitoring align the interests of principals and agents with differing goals and unequal information to minimise agency costs.

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Upper Echelons Theory

The Upper Echelons Theory postulates that the idiosyncratic characteristics (e.g., cognitive base and values) of a firm’s top-level managers play a key role in explaining and/or predicting strategic decisions and organisational performance. Top-level managers’ cognitive base and values exert influence on how they interpret strategic situations, shaping their decisions and resulting in market and financial performance outcomes.

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Concepts: 1


  • Strategic Choices (Economics, management and business studies > Upper Echelons Theory)



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