Galbraith sets out to substitute for Marshall a picture, based on a general observation, of The New Industrial State. His account of the behavior of giant firms appears plausible or, at the very least, worth discussing, but it has had no success as an ideological doctrine.

In many modern business enterprises neither bankers nor families were in control. Ownership became widely scattered. The stockholders did not have influence, knowledge, experience, or commitment to take part in the high command. Salaried managers determined long-term policy as well as managing short-term operating activities. They dominated top as well as lower and middle management. Such an enterprise controlled by its managers can properly be identified as managerial, and a system dominated by such firms is called managerial capitalism.