Empirical organizational-level examinations of agency and collaborative predictions of performance-contingent compensation

Competitive predictions regarding the relationships between: (a) monitoring and agent tenure, and (b) performance-contingent compensation are derived from agency theory and collaborative perspectives. These results are tested in a within-industry (trucking) sample and in a cross-industry sample. The results partially support both perspectives, particularly with respect to monitoring and agent tenure. Implications of the results for theory and practice are discussed.