The usually were the first mover in their market or otherwise took it with some more marketable good. This sends piles of money their way. They might also invest in brand loyalty or have various forms of lockin that prevent switching. Long as they keep advertising and selling, the piles of money keep coming in no matter what dumb stuff the do inside the company. They usually can move slowly on improving their offerings, too.
So, there is no contradiction. If anything, it might make more sense that adding people increases waste and stupidity. Remember that startup founders' ideas are failures over 90% of the time. These businesses started or grew with at least one good one. Then, they add lots of often-less-innovative people with their own ideas thrown into the mix. Of course many of them are going to be bad. Human nature, esp egos and image management, takes over from there adding the conflicts seen in the article.
So, there is no contradiction. If anything, it might make more sense that adding people increases waste and stupidity. Remember that startup founders' ideas are failures over 90% of the time. These businesses started or grew with at least one good one. Then, they add lots of often-less-innovative people with their own ideas thrown into the mix. Of course many of them are going to be bad. Human nature, esp egos and image management, takes over from there adding the conflicts seen in the article.