Galbraith’s proposition that corporations are directed by a technostructure reinforces _________ theories?
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Answer: A. Williamson’s
Explanation
Williamson focuses on managerial utility rather than profits, aligning with Galbraith closely. The technostructure replaces traditional owner control with professional corporate managers. Managerial theories examine internal corporate behavior instead of classical profit maximization. Galbraith introduced the technostructure concept to describe large corporate administrative hierarchies. Williamson developed transaction cost economics and managerial discretion theories in firms. Managerial models assume executives maximize their own utility rather than shareholder wealth.
Modern corporations often feature a separation of ownership and active management control. Understanding corporate governance requires examining how executives pursue non-profit goals. This framework helps explain modern bureaucratic behavior within large multinational enterprises. Classical economic theories assume strict profit maximization by competitive owner-operators. Marxist theories focus on class struggle and capital ownership rather than internal management. Monetarist theories concentrate on money supply control rather than corporate organizational structure.
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