FROM CORPORATIONS TO MICRO AND SMALL ENTERPRISES: THE USE OF AGENCY THEORY FOR CONFLICT RESOLUTION

Abstract

The agency's problem, according to Panda and Leepsa (2017), is one of the oldest, which has been perpetuated since the evolution of corporations. Even though it is an old problem, it is also current, which has been gaining strength throughout the history of the development of commercial exchanges and the evolution of the capital constitution of organizations. But how can we use a theory idealized under the pillars of Corporations and apply it in the context of micro and small companies? In view of this question, this work aimed to review the evolution of the Agency Theory and to show, through an empirical study in a microenterprise, how researchers can use this theory in a micro and small enterprise. This work is methodologically characterized as qualitative and descriptive. Semi-structured interviews and observation were used as data collection procedures. We also conclude that the theoretical ideas of conflict and conflict resolution from the Agency Theory can become new ways of understanding micro and small enterprises.