“First, a new firm grows more or less exponentially over time as increasing returns cause workers to flock to it. But at some point the firm reaches its peak, after which collapse is usually sudden and catastrophic. Reduced to a tiny fraction of its former size, the firm struggles on for a while with a handful of determined workers before eventually vanishing. This collapse is a consequence of the firm’s own success.

Once it grows big enough, it becomes a haven for free-riders who capitalise on the efforts of others. So the firm becomes gradually riddled with slackers, until suddenly the other workers decide they have had enough and jump ship.“

From the chapter “The work of many hands” in Critical Mass, a very interesting book.