The Strategic Choice Approach Agency Theory - A Theoretical Essay

Considering that strategy influences the contingent constraints holding the choice and definition of the factors, we can say that the concept and vision of directors, under the approach of the dominant logic and the strategic choice, chooses its strategy, the environment or market on which the company will act. In turn influences the contingent condition of the products or services that the firm has to obtain, which determines the types of work and the technical system or technology to be used by the firm, which in turn drives the organizational forms and requirements. The understanding is that there is a conceptual framework around the conception and vision of directors, the contingent condition, the types of work and the agency theory approach. This thought is being established throughout the paper in order to answer the following research question: How and through which organizational variables can the firm minimize agency problems and improve the management of work? To develop this study it was driven an essay (Whetten, 2003), once the concepts and theories reviewed seminal work seeking for the proper management (fit) of the design variables to allow a better management proposal of the different types of work, minimizing agency problems, especially for organizations who realize that the environment always influences products and services of the firm, previously designed by the strategic choice.