Managerial Theories of the Firm

Discipline: Economics

A range of theories suggesting that managements in large oligopolistic organizations have supplanted the traditional goal of profit maximization. (New goals may, for example, focus on sales or asset growth maximization.)

Managerial theories of the firm also recognize that power within the organization has shifted away from shareholders to management.

Also see: agency theory, bureaucracy, organization theory, theory of the firm, theory of the growth of the firm

Source:
W J Baumol, Business Behavior, Value and Growth (New York, 1959); R Marris, The Economic Theory of 'Managerial' Capitalism (London, 1964)

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