Authors : Noor Hasniza Haron and Norashikin Ismail
Abstract: Global economic crisis in present may have countless effects on the company performance. The key solution to this problem is to mitigate any problems and minimize any possible losses in this perplexing economy. Agency problems that still exist continue to become one of the biggest challenges for the companies to sustain high performance. Though some may try to align the conflicting interest, the possibility of entrenchment effects that lead to risk of expropriation could negatively affects performance of the company. This study is emphasized on the needs of interdisciplinary studies to obtain sustainable performance. Suggested conceptual framework is presented to represent the relationship between agency problem, entrenchment effects and sustainability issues and subsequently proposed possible solution. Following the Theory of Reasoned Action (TRA), it is suggested that good managerial process complement by an effective organization control may be able to reduce negative effects and subsequently sustain company performance to its long term success. Effective performance management system must be well understood and implemented to ensure that the mechanisms work effectively.
Noor Hasniza Haron and Norashikin Ismail, 2016. Alignment Hypothesis Versus Risk of Expropriation: Road to Sustainable Performance. The Social Sciences, 11: 4891-4895.