When Agents Become Stewards: Introducing Learning in the Stewardship Theory pp. 111-122
Authors: (David Pastoriza-Rivas, HEC Montréal, Dept of International Business, Montréal, Québec, Canada) and Miguel A. Ariño (IESE Business School, Barcelona-Spain)
Abstract: According to Stewardship Theory, conflict arises when agents and stewards work together, as the agent will tend to free ride over the steward, who feels betrayed and frustrated. While Stewardship Theory proposes a valuable alternative to Agency Theory, it is static, because it assumes no learning in individuals as a result of their interaction. This paper brings dynamics into the picture by introducing the learning that occurs inside each agent every time they interact. It is argued that individuals learn in the process of interaction and can change their preferences –not necessarily feel betrayed and frustrated. The decision making theory of Pérez López (1991 & 1993) gives foundations to the arguments proposed in the paper.