A comparative exploratory study on the benefits and challenges encountered in principal-agent relationships and business linkages

• Main Authors: Capalad, Diana Cherrie D., Lagman, Gianne Joy F., Rioflorido, Ma. Charriz Anne M.
• Format: text
• Language: English
• Published: Animo Repository 2009
• Subjects: Partnership; Agency (Law); Business partnerships
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/17492
• Institution: De La Salle University

The researchers assessed the benefits and challenges of the 13 types of principal-agent relationships through interviews and secondary data. Using content analysis, six categories attributed to the benefits experienced by the principals were identified. Among these, financial and reputational benefits were the most common. The researchers determined that transfer of information/knowledge and skills and progress in business and management practices were the most common benefits in business linkages while adverse selection and dealing with demands were the common challenges under principal-agent relationship and business linkages respectively. The Pareto analysis showed that there is a significant difference on the challenges between principal-agent relationship and business linkage. Also, there is no significant difference on the benefits between principal-agent relationship and business linkage. Keywords: benefits, challenges, principal, agent, principal-agent relationship, business linkage.