Antecedents of agency problems in service outsourcing

As outsourcing of services has grown in popularity, agency problems such as adverse selection and moral hazard have become more prevalent, leading to increased contracting costs. In this paper, we focus on how adverse selection and performance ambiguity arise in service outsourcing arrangements. We used agency theory as a theoretical lens to propose a mediated model where two antecedents, information asymmetry and goals compatibility, directly...