ABSTRACT
Introduction Agency theory has received considerable research attention since its migration into the family rm literature (Le Breton-Miller and Miller 2009; Madison et al. 2016; Shukla et al. 2014). Knowledge can be gained by this migration, such as new insights regarding agency theory, or importantly, the uniqueness, behavior, performance, and competitive advantage of family rms. Accordingly, the rst objective of this chapter is to provide an overview of agency theory and its general tenets. We then transition to reviewing and synthesizing agency theory’s use in the family rm literature, with a focus on both the content and methods of the articles. While we acknowledge that agency theory has been extensively reviewed in the extant family rm literature (e.g., Chrisman et al. 2005; Madison et al. 2016), our review diers by its focus on empirical articles. Accordingly, not only are we able to document the empirical support that demonstrates how agency theory has been extended by the family rm context, but we are able to examine the methodology employed in these studies. We conclude the chapter with suggestions for future research opportunities that can further extend theory, reduce methodological limitations, and provide additional insights into the family rm.
