Agency Theory, Values, and Early Evolutionary Economic Theory

Abstract

Purpose: We address the 'economics/cross-cultural management interface,' showing that bi-polar value perceptions fit into an agency model of an economy. Design: Modern views of economic processes have moved away from the traditional view of closed systems, with a tendency to cite them as open and displaying agency characteristics. We apply a cybernetic viable systems approach to arrive at an agency economic model.Findings: Ideas of major economic thinkers are connected through our agency model to the work of major cultural theorists, giving the basis for a new economic paradigm.Research implications and limitations: The research shows that one can model interplay effects of social and cultural change with the economy in a way that is consistent with the Lucas Critique. Further investigation into views from economics and the variety of cultural dimension studies is needed. Practical implications: This exercise sheds some light on the roots of paradigm changes in economic history. Future studies may engage in research into the practice of economic policy making with a view to predominant values in a society, and in investigation into ‘paradigm wars’ in industry, finance, and across broad sectors.What is original/ what is the value of the paper? The deep linking of culture and economics into a cybernetic agency model is new.