this kind of reasoning simply does not follow in the real world. There are many, many cases of some companies out competing others. Why? if they were all rational actors none would have any advantage over the other.
I’m not claiming management structure is the only factor in whether or not a business is competitive. It’s just a factor, and business usually try to optimize the factors under their control to be the most competitive. Of course, there are many factors outside of the businesses control as well.