We study a model of adverse selection, hard and soft information, and mentalizing ability-the human capacity to represent others' intentions, knowledge, and beliefs. By allowing for a continuous range of different information types, as well as for different means of acquiring information, we...

We study a model of adverse selection, hard and soft information, and mentalizing ability-the human capacity to represent others' intentions, knowledge, and beliefs. By allowing for a continuous range of different information types, as well as for different means of acquiring information, we...

Agency theory is one of the most important foundational theories in management research, but it rests on tenuous cognitive assumptions. We combine classical agency theory with a realistic theory of the intrinsically imperfect human potential for interpersonal sensemaking. This allows us to...

We study a model of adverse selection, hard and soft information, and mentalizing ability — the human capacity to represent others' intentions, knowledge, and beliefs. By allowing for a continuous range of different information types, as well as for different means of acquiring information, we...

Managers delegate the right to make decisions to employees because delegation economizes on scarce managerial attention, fosters the use of local knowledge, and positively impacts employee motivation. This is particularly important in knowledge-intensive organizations that operate in uncertain...

Agency theory studies the problems and solutions linked to delegation of tasks from principals to agents in the context of conflicting interests between the parties. Beginning from clear assumptions about rationality, contracting and informational conditions, the theory addresses problems of ex...

The past decade has witnessed a surge of research interest in social entrepreneurship (SE). This has resulted in important insights concerning the role of SE in fostering inclusive growth and institutional change. However, the rapid growth of SE research, the emerging nature of the literature,...

Austrian economics focuses on markets, but has much to say about organizations. In particular, Austrian insights on the structure of production, the heterogeneity and subjectivity of resources, the nature of uncertainty, the role of monetary calculation, and the function of the entrepreneur...

Network research shows that strong relationships, highly embedded relationships, and brokered relationships may have different outcomes. While pros and cons are associated with each of these network structures, how this ambiguity translates into individuals’ actions of network change is...

Corruption is ubiquitous in practice and has severe negative consequences for organizations and societies at large. Drawing on a laboratory experiment, we propose that individuals high in moral commitment are less likely to engage in corrupt behaviors and forego financial benefits. Specifically,...