The synergetic model: mixing stewardship and principal-agent theory

For the management of semi-autonomous agencies (in charge of public tasks), governments can make use of two models: principal-agent theory or stewardship theory. The theories are usually presented as a dichotomy; governments have to choose one or the other. However, in practice governments use a mixture - which is not without problems. This chapter discusses how the two theories could be combined. Ten propositions are presented about the conditions under which a synergetic relationship between governments and agencies can exist. A possible set of instruments is described that could be used in such a synergetic relationship. Further research is necessary to test the propositions and the synergetic model.