Imagine if the company was all of society.
What I'm more interested in is this idea of democracy (inefficent, but least of a number of evils) vs. enlightened dictatorship (efficient, sucks if your priorities are different from leader's).
Small is beautiful in part because you don't need to convince a lot of people with disparate motivations to do something.
The same pattern arises in startup vs. bigco, and visionary CEO vs. design by committee.