I think talent also plays a role. Profitable companies are capable of hiring poor talent. Valve hires the best, because they're both profitable and prestigious.

I think talent also plays a role. Profitable companies are capable of hiring poor talent. Valve hires the best, because they're both profitable and prestigious. A lot of smart, intrinsically motivated people may be able to find a way to organize themselves, regardless of management structure, whereas less talented employees may have different organizational needs.