Agency Theory, Values, and Early Evolutionary Economic Theory
31 Pages Posted: 29 Jul 2012
Date Written: July 1, 2012
Purpose: We address the 'economics/cross-cultural management interface,' showing that bi-polar value perceptions fit into an agency model of an economy.
Design: Modern views of economic processes have moved away from the traditional view of closed systems, with a tendency to cite them as open and displaying agency characteristics. We apply a cybernetic viable systems approach to arrive at an agency economic model.
Findings: Ideas of major economic thinkers are connected through our agency model to the work of major cultural theorists, giving the basis for a new economic paradigm.
Research implications and limitations: The research shows that one can model interplay effects of social and cultural change with the economy in a way that is consistent with the Lucas Critique. Further investigation into views from economics and the variety of cultural dimension studies is needed.
Practical implications: This exercise sheds some light on the roots of paradigm changes in economic history. Future studies may engage in research into the practice of economic policy making with a view to predominant values in a society, and in investigation into ‘paradigm wars’ in industry, finance, and across broad sectors.
What is original/ what is the value of the paper? The deep linking of culture and economics into a cybernetic agency model is new.
Keywords: agency theory, institutional economics, generic agency model, national values, history of economic thought
JEL Classification: B15, B25, B52, C10, Z1, Z13
Suggested Citation: Suggested Citation