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Principal-Agent Theory and Organisational Change

Lessons from New Zealand Health Information Management

Bibliographic Data

ID11194158
AuthorsRichard Gauld (0000-0001-5401-1192, University of Otago, corresponding author), Robin Gauld
Year2007
Volume28
Issue1
Pages17-34
Publication date2007-03-01
Open AccessNo
TypeARTICLE
VenuePolicy Studies (JOURNAL)
Journal identifiersISSN: 0144-2872 • E-ISSN: 1470-1006
PublisherInforma UK Limited (PUBLISHER • GB)
DOI10.1080/01442870601121395
OpenAlexW1938678627
LanguageEN
Citations received2
References cited27

Principal-agent theory has provided a powerful and all-encompassing framework for public sector organisation. Its influence in New Zealand since the late-1980s has been particularly strong, despite questions over its appropriateness. This article discusses the case of health information management in New Zealand's health sector which, through the 1990s, endured several policy changes. One constant during this period was reliance on principal-agent theory-inspired organisation. The article illustrates how principal-agent theory failed to create an environment conducive to effective development of health information systems. By the end of the 1990s, when principals wanted collaboration in health care, information systems developed in the preceding competitive period, with no central coordination, were simply inadequate. Based on experiences outlined in the article, four areas are noted in which principal-agent theory may need revision

Business · Computer security · Economics · Health sector · Health services · Management · Period (music · Principal (computer security · Principal–agent problem · Sociology · Computer Science · Healthcare Policy and Management · Public Policy and Administration Research

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