Internal competition for profit creates a natural tendency to centralize power as members differentiate themselves through wins and losses, and this centralizing tendency is an additional destabilizing force on a decentralized organization.
Source quote, verbatim
The internal competition for profit creates the natural tendency to centralize power as the members differentiate themselves with wins and losses. This centralizing tendency is another force further destabilizing the organizations.
Craig Calcaterra, Wulf A. Kaal, Decentralized Governance (2021). SSRN: https://ssrn.com/abstract=3782214
Holds when
for profit organizations with internal competition
Classification
mechanismsupport: argueddecentralization
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