Mitigating principal-agent problems in base-of-the-pyramid markets: An identity spillover perspective

Academy of Management Journal

Volumn 56, Issue 3, 2013, Pages 659-682

  Kistruck, Geoffrey M ^a   Sutter, Christopher J ^b   Lount, Robert B ^b   Smith, Brett R ^a  

^a UNIVERSITY OF MIAMI   (United States)

^b OHIO STATE UNIVERSITY   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 84880280843     PISSN: 00014273     EISSN: None     Source Type: Journal    
DOI: 10.5465/amj.2011.0336     Document Type: Article

References (110)

1. Akerlof, G., & Kranton, R. 2000. Economics and identity. Quarterly Journal of Economics, 115:715-753.
2. Akerlof, G., & Kranton, R. 2005. Identity and the economics of organizations. Journal of Economic Perspectives, 19:9-32.
3. Alchian, A., & Demsetz, H. 1972. Production, information costs and economic organization. American Economic Review, 62:777-795.
4. Anupindi, R., & Sivakumar, S. 2007. ITC's e-Choupal: A platform strategy for rural transformation. In V. K. Rangan, J. A. Quelch, G. Herrero, & B. Barton (Eds.), Business solutions for the global poor: Creating social and economic value: 173-182. San Francisco: Jossey-Bass.
5. Ashforth, B. 2001. Role transitions in organizational life: An identity-based perspective. Mahwah, NJ: Erlbaum.
6. Ashforth, B., Harrison, S., & Corley, K. 2008. Identification in organizations: An examination of four fundamental questions. Journal of Management, 34:325-374.
7. Ashforth, B., & Humphrey, R. 1993. Emotional labor in service roles: The influence of identity. Academy of Management Review, 18:88-115.
8. Ashforth, B., & Johnson, S. 2001. Which hat to wear?. The relative salience of multiple identities in organizational contexts. In M. Hogg & D. Terry (Eds.), Social identity processes in organizational contexts: 31-48. Philadelphia: Psychology Press.
9. Ashforth, B., Kreiner, G., & Fugate, M. 2000. All in a day's work: Boundaries and micro role transitions. Academy of Management Review, 25:472-491.
10. Avey, J. B., Avolio, B. J., Crossley, C. D., & Luthans, F. 2009. Psychological ownership: Theoretical extensions, measurement, and relation to work outcomes. Journal of Organizational Behavior, 30:173-191.
11. Bahrick, H. P., Fitts, P. M., & Rankin, R. E. 1952. Effect of incentives upon reactions to peripheral stimuli. Journal of Experimental Psychology, 44:400-406.
12. Belk, R. 1988. Possessions and the extended self. Journal of Consumer Research, 15:139-168.
13. Ben-Ner, A., & Jones, D. 1995. Employee participation, ownership, and productivity: A theoretical model. Industrial Relations, 34:532-554.
14. Black, J., Mendenhall, M., & Oddou, G. 1991. Toward a comprehensive model of international adjustment: An integration of multiple theoretical perspectives. Academy of Management Review, 16:291-317.
15. Bonner, S. E., & Sprinkle, G. B. 2002. The effects of monetary incentives on effort and task performance: Theories, evidence, and a framework for research. Accounting, Organizations and Society, 27:303-345.
16. Brewer, M., & Gardner, W. 1996. Who is this "we"? Levels of collective identity and self-representations. Journal of Personality and Social Psychology, 71:83-93.
17. Burke, P. 1980. The self: Measurement requirements from an integrationist perspective. Social Psychology Quarterly, 43:18-29.
18. Campbell, D., & Stanley, J. 1966. Experimental and quasi-experimental designs for research. Chicago: Rand McNally.
19. Christensen, L. J., Parsons, H., & Fairbourne, J. 2010. Building entrepreneurship in subsistence markets: Microfranchising as an employment incubator. Journal of Business Research, 63:595-601.
20. Colquitt, J. A. 2008. Publishing laboratory research in AMJ: A question of when, not if. Academy of Management Journal, 51:616-620.
21. Daily, C. M., Dalton, D., & Cannella, A. 2003. Corporate governance: Decades of dialogue and data. Academy of Management Review, 28:371-382.
22. Dalton, D., Daily, C., Ellstrand, A., & Johnson, J. 1998. Meta-analytic reviews of board composition, leadership structure, and financial performance. Strategic Management Journal, 19:269-290.
23. De Soto, H. 2000. The mystery of capitalism: Why capitalism triumphs in the west and fails everywhere else. New York: Basic Books.
24. Dia, M. 1996. Africa's management in the 1990s and beyond: Reconciling indigenous and transplanted institutions. Washington: World Bank.
25. Eggleston, K. 2005. Multitasking and mixed systems for provider payment. Journal of Health Economics, 24:211-223.
26. Eisenhardt, K. 1988. Agency and institutional explanations of compensation in retail sales. Academy of Management Journal, 31:488-511.
27. Eisenhardt, K. 1989. Agency theory: An assessment and review. Academy of Management Review, 14:57-74.
28. Fama, E., & Jensen, M. 1983. Separation of ownership and control. Journal of Law and Economics, 26:301-325.
29. Feltham, G., & Xie, F. 1994. Performance measure congruity and diversity in multi-task principal/agent relations. Accounting Review, 69:429-453.
30. Flick, U. 2000. Episodic interviewing. In M. Bauer & G. Gaskell (Eds.), Qualitative researching with text, image and sound-A handbook: 75-92. London: Sage.
31. Frese, M. 2000. Success and failure of microbusiness owners in Africa: A psychological approach. Westport, CT: Quorum.
32. George, E., & Chattopadhyay, P. 2005. One foot in each camp: The dual identification of contract workers. Administrative Science Quarterly, 50:68-99.
33. Gephart, R. 2004. Qualitative research and the Academy of Management Journal. Academy of Management Journal, 47:454-462.
34. Gerbner, G., Morgan, M., Gross, L., Signorielli, N., & Shanahan, J. 2002. Growing up with television: Cultivation processes. In J. Bryant & D. Zillman (Eds.), Media effects: Advances in theory and research (2nd ed.). Hillside, NJ: Erlbaum.
35. Ghoshal, S., & Moran, P. 1996. Bad for practice: A critique of the transaction cost theory. Academy of Management Review, 21:13-47.
36. Goldstone, R. L. 1994. The role of similarity in categorization: Providing a groundwork. Cognition, 52:125-157.
37. Gomez-Mejia, L., Tosi, H., & Hinkin, T. 1987. Managerial control, performance, and executive compensation. Academy of Management Journal, 30:51-70.
38. Goodwin, C. 2009. Research in psychology: Methods and design (6th ed.). Hoboken, NJ: Wiley.
39. Grant, A., & Wall, T. 2009. The neglected science and art of quasi-experimentation: Why-to, when-to, and how-to advice for organizational researchers. Organizational Research Methods, 12:653-686.
40. Harris, M., & Raviv, A. 1978. Some results on incentive contracts with applications to education and employment, health insurance, and law enforcement. American Economic Review, 68:20-30.
41. Hart, S. L., & Christensen, C. M. 2002. The great leap: Driving innovation from the base of the pyramid. Sloan Management Review, 44:51-56.
42. Hart, S. L., & Dowell, G. 2011. A natural-resource-based view of the firm: Fifteen years after. Journal of Management, 37:1464-1479.
43. Hart, S. 2005. Capitalism at the crossroads: The unlimited business opportunities in serving the world's most difficult problems. Upper Saddle River, NJ: Wharton School Publishing.
44. Heide, J. 2003. Plural governance in industrial purchasing. Journal of Marketing, 67:18-29.
45. Highhouse, S. 2009. Designing experiments that generalize. Organizational Research Methods, 12:554-566.
46. Holmstrom, B., & Milgrom, P. 1991. Multitask principal agent analyses: Incentive contracts, asset ownership and job design. Journal of Law, Economics and Organization, 7:24-52.
47. Hurwicz, L. 1972. On informationally decentralized systems. In C. B. McGuire & R. Radner (Eds.), Decision and organization: A volume in honor of Jacob Marshak: 297-336. Amsterdam: North-Holland.
48. Jain, S. C., & Vachani, S. 2006. Multinational corporations and global poverty reduction. Cheltenham, UK: Edward Elgar.
49. Jensen, M., & Meckling, W. 1976. Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3:305-360.
50. Kandachar, P., & Halme, M. 2008. Sustainability challenges and solutions at the base of the pyramid. Sheffield, UK: Greenleaf.
51. Karamchandani, A., Kubzansky, M., & Lalwani, N. 2011. Is the bottom of the pyramid really for you? Harvard Business Review, 89(3):107-111.
52. Karnani, A. 2007. The mirage of marketing to the bottom of the pyramid: How the private sector can alleviate poverty. California Management Review, 49(4):90-111.
53. Keeley, M. 1980. Organizational analogy: A comparison of organismic and social contract models. Administrative Science Quarterly, 25:337-362.
54. Khanna, T., & Palepu, K. 1997. Why focused strategies may be wrong for emerging markets. Harvard Business Review, 75(4):41-51.
55. Kistruck, G., & Beamish, P. 2010. The interplay of form, structure and embeddedness in social entrepreneurship. Entrepreneurship: Theory and Practice, 34:735-761.
56. Kistruck, G., Webb, J., Sutter, C., & Ireland, R. 2011. Microfranchising in base-of-the-pyramid markets: Institutional challenges and adaptations to the franchising model. Entrepreneurship: Theory and Practice, 35:503-531.
57. Kostova, T., & Zaheer, S. 1999. Organizational legitimacy under conditions of complexity: The case of the multinational enterprise. Academy of Management Review, 24:64-81.
58. Kreiner, G., Hollensbe, E., & Sheep, M. 2009. Balancing borders and bridges: Negotiating the work-home interface via boundary work tactics. Academy of Management Journal, 52:704-730.
59. Kruse, D., & Blasi, J. 1997. Employee ownership, employee attitudes, and firm performance: A review of the evidence In D. Lewin, J. B. Mitchell, & M. A. Zaidi (Eds.), The human resources management handbook: Part 1:113-151. Greenwich, CT: JAI.
60. London, T. 2008. The base-of-the-pyramid perspective: A new approach to poverty alleviation. In Academy of Management best paper proceedings. Anaheim, CA: Academy of Management.
61. London, T., & Hart, S. 2004. Reinventing strategies for emerging markets: Beyond the transnational model. Journal of International Business Studies, 35:350-370.
62. Mair, J., & Marti, I. 2009. Entrepreneurship in and around institutional voids: A case study from Bangladesh. Journal of Business Venturing, 24:419-435.
63. Marquez, P., & Rufin, C. 2011. Private utilities and poverty alleviation: Market initiatives at the base of the pyramid. Northampton, UK: Edward Elgar.
64. McCall, G., & Simmons, J. 1978. Identities and interactions. New York: Free Press.
65. McLeish, K. N., & Oxoby, R. J. 2011. Social interactions and the salience of social identity. Journal of Economic Psychology, 32:172-178.
66. McNamara, H. J., & Fisch, R. I. 1964. Effect of high and low motivation on two aspects of attention. Perceptual and Motor Skills, 19:571-578.
67. Nelson, R., & Winter, S. 1982. The Schumpeterian tradeoff revisited. American Economic Review, 72:114-132.
68. Nuttbrock, L., & Freudiger, P. 1991. Identity salience and motherhood: A test of Stryker's theory. Social Psychology Quarterly, 54:146-157.
69. Pettit, N. C., & Lount, R. B., Jr. 2011. Through whose eyes? The impact of identification on judgements of group status. Group Processes and Intergroup Relations, 14:533-548.
70. Pierce, J. L., Kostova, T., & Dirks, K. T. 2001. Towards a theory of psychological ownership in organizations. Academy of Management Review, 26:298-310.
71. Pollatsek, A., & Well, A. D. 1995. On the use of counterbalanced designs in cognitive research: A suggestion for a better and more powerful analysis. Journal of Experimental Psychology. Learning, Memory, and Cognition, 21:785-794.
72. Prahalad, C. K. 2004. The fortune at the bottom of the pyramid: Eradicating poverty through profits. Upper Saddle River, NJ: Wharton School Publishing.
73. Prahalad, C. K., & Hart, S. 2002. The fortune at the bottom of the pyramid. Strategy+Business, 26:1-14.
74. Pratt, M. G. 2000. The good, the bad, and the ambivalent: Managing identification among Amway distributors. Administrative Science Quarterly, 45:456-493.
75. Pratt, M. G., Rockmann, K. W., & Kaufmann, J. B. 2006. Constructing professional identity: The role of work and identity learning cycles in the customization of identity among medical residents. Academy of Management Journal, 49:235-262.
76. Preyra, C., & Pink, G. 2001. Balancing incentives in the compensation contracts of nonprofit hospital CEOs. Journal of Health Economics, 20:509-525.
77. Rangan, V. K., Quelch, J. A., Herrero, G., & Barton, B. 2007. Business solutions for the global poor: Creating social and economic value. San Francisco: Jossey-Bass.
78. Redinbaugh, L. 1976. Retailing management. New York: McGraw-Hill.
79. Reichardt, C. S. 2009. Quasi-experimental design. In R. E. Milsap & A. M. Maydeu-Olivares (Eds.), The SAGE handbook of quantitative methods in psychology: 46-71. Thousand Oaks, CA: Sage.
80. Ross, S. 1973. The economic theory of agency: The principal's problem. American Economic Review, 63:134-139.
81. Rudmin, F., & Berry, J. 1987. Semantics of ownership: A free-recall study of property. Psychological Record, 37:257-268.
82. Rungtusanatham, M., Rabinovich, E., Ashenbaum, B., & Wallin, C. 2007. Vendor-owned inventory management arrangements in retail: An agency theory perspective. Journal of Business Logistics, 28:111-135.
83. Scott, C. R. 1997. Identification with multiple targets in a geographically dispersed organization. Management Communications Quarterly, 10:491-522.
84. Scott, S., & Lane, V. 2000. A stakeholder approach to organizational identity. Academy of Management Review, 25:43-62.
85. Seelos, C., & Mair, J. 2007. Profitable business models and market creation in the context of deep poverty: A strategic view. Academy of Management Perspectives, 21(4):49-63.
86. Settles, I. H., Sellers, R. M., & Damas, A., Jr.. 2002. One role or two? The function of psychological separation in role conflict. Journal of Applied Psychology, 87:574-582.
87. Shadish, W., Cook, T., & Campbell, D. 2002. Experimental and quasi-experimental designs for generalized causal inference. Boston: Houghton-Mifflin.
88. Shapiro, S. P. 2005. Agency theory. In K. S. Cook & D. S. Massey (Eds.), Annual review of sociology, vol. 31:263-284. Palo Alto, CA: Annual Reviews.
89. Sheppard, B., & Sherman, D. 1998. The grammars of trust: A model and general implications. Academy of Management Review, 23:422-437.
90. Simanis, E., & Hart, S. 2006. Expanding the possibilities at the base of the pyramid. Innovations, 1:43-49.
91. Smith, B. 2010. The microconsignment model reconsidered: Invention-led development by shifting risk, transferring knowledge, and scaling capabilities. Innovations, 5:129-135.
92. Smith, B., & Stevens, C. 2010. Different types of social entrepreneurship: The role of embeddedness on the measurement and scaling of social value. Entrepreneurship and Regional Development, 6:575-598.
93. Smith, E. R. 1996. What do connectionism and social psychology offer each other? Journal of Personality and Social Psychology, 70:893-912.
94. Spencer, S. J., Steele, C. M., & Quinn, D. M. 1999. Stereotype threat and women's math performance. Journal of Experimental Social Psychology, 35:4-28.
95. Spencer, S. J., Zanna, M. P., & Fong, G. T. 2005. Establishing a causal chain: Why experiments are often more effective than mediational analyses in examining psychological processes. Journal of Personality and Social Psychology, 89:845-851.
96. Stets, J., & Burke, P. 2000. Identity theory and social identity theory. Social Psychology Quarterly, 63:224-237.
97. Stroh, L. K., Brett, J. M., Baumann, J. P., & Reilly, A. H. 1996. Agency theory and variable pay compensation strategies. Academy of Management Journal, 39:751-767.
98. Stryker, S. 1968. Identity salience and role performance: The importance of symbolic interaction theory for family research. Journal of Marriage and the Family, 30:558-564.
99. Stryker, S. 1980. Symbolic interactionism: A social structural version. Menlo Park, CA: Benjamin Cummings.
100. Stryker, S., & Burke, P. J. 2000. The past, present, and future of an identity theory. Social Psychology Quarterly, 63:284-297.
101. Tosi, H. L., & Gomez-Mejia, L. 1989. The decoupling of pay and performance: An agency theory perspective. Administrative Science Quarterly, 34:169-189.
102. Tosi, H. L., Werner, S., Katz, J. P., & Gomez-Mejia, L. R. 2000. How much does performance matter? A metaanalysis of CEO pay studies. Journal of Management, 26:301-339.
103. Vachani, S., & Smith, N. C. 2008. Socially responsible distribution: Distribution strategies for reaching the bottom of the pyramid. California Management Review, 50(2):52-84.
104. Van Dyne, L., & Pierce, J. L. 2004. Psychological ownership and feelings of possession: Three field studies predicting employee attitudes and organizational citizenship behavior. Journal of Organizational Behavior, 25:439-459.
105. Viswanathan, M., Rosa, J., & Harris, J. 2005. Decision making and coping of functionally illiterate consumers and some implications for marketing management. Journal of Marketing, 69:15-31.
106. Viswanathan, M., Sridharan, S., Gau, R., & Ritchie, R. 2009. Designing marketplace literacy education in resource-constrained contexts: Implications for public policy and marketing. Journal of Public Policy and Marketing, 28:85-94.
107. Vora, D., & Kostova, T. 2007. A model of dual organizational identification in the context of the multinational enterprise. Journal of Organizational Behavior, 28:327-350.
108. Webb, J., Kistruck, G. M., Ireland, R. D., & Ketchen, D. J. 2010. The entrepreneurship process at the base of the pyramid markets: The case of multinational enterprise/nongovernmental organization alliance. Entrepreneurship: Theory and Practice, 34:555-581.
109. Wolfson, M. 1985. Empirical evidence of incentive problems and their mitigation in oil and gas shelter problems. In J. Pratt & R. Zeckhauser (Eds.), Principals and agents: The structure of business: 101-126. Boston: Harvard Business School Press.
110. Zhang, Y., George, J. A., & Chan, T. S. 2006. The paradox of dueling identities: The case of local senior executives in MNC subsidiaries. Journal of Management, 32:400-425.