Or rather, a large organization could only avoid slowing down if they avoided tree structure. And since human nature limits the size of group that can work together, the only way I can imagine for larger groups to avoid tree structure would be to have no structure: to have each group actually be independent, and to work together the way components of a market economy do. That might be worth exploring. I suspect there…
Me too. But the organization doesn't have to be a "firm" in the usual sense...
Anyway, I find it interesting that Coase argued that firms exist to mitigate transaction costs resulting from imperfect information... and then Downes & Mui argued that digital technology would reduce transaction costs to a point of eliminating the need for large firms, creating what they called "The Law of Diminishing Firms."
So far we haven't seen big corporations fading away, but I still come down on the side of an eventual transition to networks of collaborating (smaller) entities displacing some of the bigger firms.