Research on Coordinative Efforts between Enterprise and Project Team Based on Theory of Principal-Agency

In POO (Project-Oriented Organizations), the efforts from enterprise such as attention and support on the project as well as coordinative efforts between enterprise and project team are greatly influence the outcome of the project team. However, in traditional principal-agency theory, only the efforts from project team members were considered, while the efforts from enterprise were neglected. Therefore, this paper brings forward the principal and agency model between enterprise and project team under POO situation, considering the efforts from enterprise as well as coordinative efforts between enterprise and project team. It also analyzes the interactions of behavior strategy choices between enterprise and project team besides their effort and coordination behavior under different revenues. The results showed that: 1) the project team will always choose high effort when the amount of punishment is high enough; 2) the relevance between the efforts of enterprise and project team is not always positive; 3) the relevance between expected revenue of enterprise and project team and profit share is not always positive. According to theoretical results this paper has provided strategies and suggestions on how to enhance the cooperation between project teams and consequently raised the team performance. Finally, a case study is used to test previous theoretical results.