Because companies grow not only horizontally but vertically. Vertical structures create encapsulation of individuals and that leaves room to exploit informatio

Because companies grow not only horizontally but vertically. Vertical structures create encapsulation of individuals and that leaves room to exploit information asymmetries. e.g: stealing credit, favoritism, etc... rigging the game to their favor. At the late stages of this game, people like this can get away with anything: hiring and promoting their friends, openly insulting people, just openly lie knowing nobody can do anything about it, etc.