Author: Fayezi Sajad O'Loughlin Andrew Zutshi Ambika
Publisher: Emerald Group Publishing Ltd
ISSN: 1359-8546
Source: Supply Chain Management: An International Journal, Vol.17, Iss.5, 2012-08, pp. : 556-570
Disclaimer: Any content in publications that violate the sovereignty, the constitution or regulations of the PRC is not accepted or approved by CNPIEC.
Abstract
Purpose ‐ The paper aims to explain how agency theory can be used to inform our understanding of the dynamics surrounding supply chain behaviours and relationships. Design/methodology/approach ‐ A structured review of the literature using a three-stage refinement process is used. The articles were sourced through online databases and keyword classifications, such as "agency theory", "principal-agent relationships" and "supply chain management". The search initially identified over 86 articles. After further screening these were reduced to 19 for final assessment and comparison. Findings ‐ Despite agency theory's prevailing descriptive and predictive qualities there is scarcity in its application to the SCM discipline. The authors posit that agency theory provides valuable insights for relationship engineering within supply chains where social, political, legal and behavioural dynamics dominate. Practical implications ‐ It is a critical task for managers to understand and mitigate abnormal behaviours across the supply chain. Agency theory serves this need by providing them with a useful tool to respond to transaction cost dilemmas through contractual and non-contractual remedies. Originality/value ‐ This is one of the first studies that examines the current state of agency theory application in the SCM literature and suggests potential avenues for future research.
Related content
By Miemczyk Joe Johnsen Thomas E. Macquet Monica
Supply Chain Management: An International Journal, Vol. 17, Iss. 5, 2012-08 ,pp. :