Drifting tracks. A case study on the principal-agent relationship in the Dutch railway sector

Keywords

Loading...
Thumbnail Image

Issue Date

2025-12-02

Language

en

Document type

Journal Title

Journal ISSN

Volume Title

Publisher

Title

ISSN

Volume

Issue

Startpage

Endpage

DOI

Abstract

Principal-agent theory is widely used in public administration research to investigate delegated relationships. However, the theory has been criticised for its dominant principal-centred focus and the reliance on the rationalist paradigm that overlooks the agent’s perspective. This research addresses this issue by adopting an agent-centred approach to examine the factors that lead to agency drift in the relationship between the Dutch Ministry of Infrastructure and Water Management (principal) and ProRail (agent), the state-owned railway infrastructure manager. Through an abductive, qualitative single case study, combining document analysis and semi-structured interviews has been researched how agency drift, defined as the agent’s deviation from the principal’s goals, emerges and manifests. The findings reveal that agency drift occurs in a latent and subtle manner, through shifting, shirking and potential neglect. The three factors that influence agency drift are goal misalignment, institutional expertise and lobbying. Goal misalignment reflects divergent operational and strategic priorities, institutional expertise enables ProRail to reframe the ministry’s objectives and lobbying is found to be a complementary mechanism through which ProRail attempts to influence policy direction. Although information asymmetry is structurally present, it does not significantly contribute to agency drift due to interdependence and willingness to cooperate. These results show that agency drift does not solely emerge from opportunism and hereby challenges the rationalist paradigm of the principal-agent theory.

Description

Citation

Supervisor

Faculty

Faculteit der Managementwetenschappen