Revisiting the Principal-Agent Theory of Agency : Comments on the Firm-Level and Cross-National Embeddedness Theses

In the following, my comments are organized as follows. Firstly, I make some general comments and observations on the general problems and limitations of the orthodox Principal-Agent [P-A] theory of Agency put forward by Jensen and Meckling (M-E) when seen through the lens of real-world organizations and human intentionality. Next, I address the socialized P-A theory of agency discussed by L-et al. in their FET framework. I then proceed to comment on the second part of L-et al.'s thesis, namely their attempt to merge the micro level of the firm with the macro level of nations in the form of their CET framework. In closing, I ask whether the authors, by importing some of the scientific ideals from orthodox economics while at the same time criticizing very same tenets, thus making it much more difficult to harvest the potential fruits of their interesting alternative, have not in fact struck a kind of Faustian bargain