A concise autobiography of agency theory: translating conflicts into consensus

Purpose What if “Agency Theory” were a living, breathing person? This concise autobiography brings it to life, tracing its origins, charting its evolution and exploring how it attempts to resolve principal–agent conflicts, nurturing alignment and shared purpose between parties. Design/methodology/approach This “In Motion” article intends to provide deeper insight into agency theory. The article is structured chronologically by conducting a concise yet focused literature review, particularly on the seminal work of worldly scholars in this area. Agency theory is personified in this article. The article adopts the methodology of “first-person omniscient,” where the narrator uses first-person pronouns (“I” and “my”) while being mindful of the perceptions of others. Findings The autobiography reflects on key moments in the development of agency theory, its advancements, the criticism faced and its connection with corporate governance. The journey through agency theory reveals its critical role in addressing conflicts of interest and information asymmetry in organisational settings. The narrative emphasises the importance of aligning incentives, implementing monitoring mechanisms, fostering accountability and enhancing organisational effectiveness. It also briefly discusses recent attempts in the literature to incorporate aspects of behavioural economics into agency theory. Moreover, the article illustrates how agency theory has evolved to address emerging challenges in the corporate landscape. Originality/value This work offers a unique perspective on agency theory, combining scholarly rigour with personal narratives. This article is expected to guide researchers, practitioners and policymakers in understanding the complexities of agency theory and its implications for relationships between parties in contention.