alt Hacker NewsIf it was so clearly ineffective, why does it get challenged more often and replaced? Existing corporations aren't likely to change, but new startups and work owned coops exist, so why don't they compete?
Maybe ranking it on a scale of best to worse is too simplistic a view, and there are reasons this develops. Maybe it is the best option when there is a good leader, thus such structures dominate, much as a government ran by philosopher kings are better. But this only lasts as long as a wise rule is in charge, and it reverts back to a norm, and eventually, due to pure time and chance, enough bad leaders come on board that slowly dismantle the giants, but this happens at a time scale we don't particularly notice due to how much inertia large corporations can have (before we even get into the less pleasant issues like regulatory capture).
>If it was so clearly ineffective, why does it get challenged more often and replaced?
I supposed you meant "why doesn't it get challenged"?
Well, look at how long it took for a democratic/Republican system to appear and survive. The French 1st Republic was immediately at war with all of Europe (I am not talking of Napoleon at all here, it was before that, when the French King was executed).
Nowadays, good luck getting any kind of financing with an "alternative" governance model. The banks and investors will either refuse or edge by pushing higher return rates on you. The whole system is conservative.
The adage "democracy is the worst system, apart from all others" only becomes true long-term. There are plenty of short-lived democracies back to antiquity, in the middle of the middle ages, during the Renaissance, the XIXth century... All stamped down by "more efficient" dictatorial empires... That aren't here anymore. You can expect the same in the even more cutthroat corporate environment, where fitting the system buys you leverage.
And don't get me stated on startups: most of them seek only an exist strategy. Very few challenge any existing behemoth. They are basically externalized R&D.