engleski

APPLICATION OF THE PRINCIPAL-AGENT THEORY TO CONSTRUCTION MANAGEMENT: LITERATURE REVIEW

There is a growing literature concerning the application of the principal-agent theory to construction management. As this literature review demonstrates, it has received particular attention in the first decade of the third millennium. The theory focuses on information asymmetry, in which one of the two parties is better informed than the other, and in which they do not share the same interests. Opportunistic behaviour can be expected in such relationships. The concept of asymmetric information is of great value to modern economic theory, and it is thus likely to play a major role in the study of construction management. This review focuses on keywords, which are essential in literature search that precedes all research activities. The results of this literature review pinpoint the key issues associated with the principal-agent theory in the leading journals in construction management to date. As is shown in the paper, contracts and risk management are uppermost in the literature surveyed. Together, these two subjects fit very well in the principal-agent framework. This review will provide the basis for future research in construction management and related fields

principal-agent theory; information asymmetry; project management; risk;

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