The same logic is then applied to making inferences on the internal structure of the firm. The purpose of this paper is not to reject any of the dominant conceptions of the firm. Instead of encompassing an explanation for why firms exist we take the firm as given and look at it as a social construct, viz. Although that can be said to hold for some activities in some firms, complete knowledge and stability are hardly the salient characteristics of the present competitive environment. Indeed, there are many pressures on the hierarchical model and firms do experiment with ways to deal with those.
Solutions range from ad hoc measures to radical structural transformations.
Hierarchy could achieve that yesterday. The paper ends with a more speculative section with an illustration of internal structures in a future firm.