"Managers to the rescue!" Evaluating the legacy of stewardship theory from an institutional perspective

Jacob Lok, Hokyu Hwang, Markus Höllerer

Research output: Chapter in Book/Report/Conference proceedingChapter

Abstract

The relationship between owners and managers-i.e., the question of corporate governance and control-has been a central concern of organization and management theory for many decades (Berle and Means 1932; Djelic 2013; Fiss 2008). Lex Donaldson’s work (e.g., J. Davis, Schoorman, and Donaldson 1997; Donaldson and Davis 1991) on stewardship theory in the 1990s sparked an important and vibrant debate that continues to unfold today. Should management be governed by the principles of agency theory, which at its core assumes that the interests of managers, and those of the firm and its owners (and maybe society at large), are misaligned? Or should management be based on stewardship theory’s central proposition that these interests are (or can be) intrinsically aligned? These questions reflect a key concern not only of scholars of organization and management but also of contemporary societies more broadly, as corporations increasingly wield power and influence over a broad range of societal domains (Perrow 1991).
Original languageEnglish
Title of host publicationAdvancing organizational theory in a complex world
EditorsJane XJ Qiu, Ben Lanfeng Luo, Chris Jackson, Karin Sanders
Place of PublicationNew York, NY
PublisherRoutledge, Taylor and Francis Group
Chapter7
Pages116-131
Number of pages16
ISBN (Electronic)9781315677293
ISBN (Print)9781138935570
DOIs
Publication statusPublished - 2017
Externally publishedYes

Publication series

NameRoutledge Studies in Management, Organization and Society
PublisherRoutledge

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  • Cite this

    Lok, J., Hwang, H., & Höllerer, M. (2017). "Managers to the rescue!" Evaluating the legacy of stewardship theory from an institutional perspective. In J. XJ. Qiu, B. L. Luo, C. Jackson, & K. Sanders (Eds.), Advancing organizational theory in a complex world (pp. 116-131). (Routledge Studies in Management, Organization and Society). New York, NY: Routledge, Taylor and Francis Group. https://doi.org/10.4324/9781315677293