The relationship between convention hosts and professional conference organizers

Abstract

It is common for host organizations that operate conventions to employ professional conference organizers (PCOs) to perform a variety of professional services relating to the organization, management and operation of the event. As such, a productive relationship between the host and PCO is essential to the successful operation of the event. Yet, the relationship is often strained as the host organization may feel uncertain about the selection of the PCO or may have reservations about its performance. Such an arrangement represents a classic principle–agent relationship that can be examined through agency theory. This study examines this relationship from the perspective of the host organization. It found that hosts do express concerns about adverse selection and moral hazard, but that these concerns can be mitigated by a series of pre- and post-contract awarding control measures.