What is Marris model of theory of firm?

The Marris model of the theory of the firm, developed by economist C. D. Marris in the 1960s, focuses on the interplay between managerial objectives and the growth of firms. It posits that managers aim to maximize the growth of the firm rather than just maximizing profits, balancing between satisfying shareholders and achieving personal goals. The model emphasizes the importance of retaining sufficient profits for reinvestment to sustain growth while considering the constraints imposed by market conditions and competition. This approach highlights the role of managerial discretion in shaping firm behavior and strategic decisions.