Agency theory versus stewardship theory in various industries in the province of Batangas

Date of Publication


Document Type


Degree Name

Doctor of Business Administration


Ramon V. Del Rosario College of Business


Management and Organization Department

Thesis Adviser

Benito L. Teehankee


This study was conducted for the purpose of validating stewardship theory as a management theory using the underlying pyschological and social factors - motivation, identification, commitment and use of power, that describe agency and stewardship theories in owner-manager relationship.

The growing attention on the subject prompted the researcher to extend the previous researches/studies conducted by Davis, Schoorman, & Donaldson (1997) Stevenson (2002) Vargas-Sanchez (2004) and Wen, Jung, Yi & Lopin (2006), where he delved into the relationship of owner-manager in select corporations in Batangas Province. He invoked in his study two management theories - Agency and Stewardship, to determine the relationship that exists between them and to find out as well how either of these theories shaped the organization.

The descriptive method of research, specifically normative survey technique, was used in data gathering. The questionnaire served as the instrument for collecting information.

Purposive sampling, classified as non-probability sampling, was utilized to determine the respondents of the study. Ten public and non-public corporations with at an assessed value of its assets of at least Php30,000,000.00 were tapped to partake in the enquiry. The data were interpreted and analyzed using various statistical tools such as frequency and percentage formula, descriptive statistics, and the chi-square test of homogeneity.

The overall results revealed that both owners and managers in the ten firms investigated chose to behave as stewards, i.e. the relationship established by them (indicated in problem no. 5) is one leading toward a stewardship model of management.

In spite of the fact that the respondent-firms have practically the same background, this study did not make an assumption that managers and owners are predisposed to act like stewards or agents the research was based on choice rather than on determinism.

The choice of the managers to become stewards was contingent on their psychological motivations and their perceptions of the situation. Whereas, owners chose to create the steward relationship based on their perceptions of the situation and the manager.

The implication of this study for proposition 9 (If a mutual stewardship relationship exists, potential performance of the firm is maximized) is limited in the sense that the findings in problem no. 6, which is about knowing the association between the management theory adopted by the owner and manager of the corporation and its business profile, indicate that the association cannot yet be ascertained since all the ten companies take on a single management theory. That, its business profile (e.g. performance) cannot be linked at this point with the supposed theory they chose to embrace. The results of the study will prove this assertion, i.e., the corporations just examined have varied financial performances despite gripping on to one theory. What can only be deduced at this point is the relationship (steward-steward) established by the owner and manager in the ten firms surveyed. Thus, it would be interesting to find out in the succeeding studies the progression of said relationship, i.e., if it will indeed have mutual gains for both owners and managers and if the firms potential performance is maximized given this type of relationship.

The results also proved that stewardship theory is a management theory, an alternative model of motivation and behaviour.

Abstract Format






Accession Number


Shelf Location

Archives, The Learning Commons, 12F Henry Sy Sr. Hall

Physical Description

leaves ; 4 3/4 in.

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