When you create a standard business, it is deceptively easy to create one legal entity with shareholders, appoint a top manager, form a management team, and a hire a truck load of employees to be bossed around and do all the work.
Et voilà! You now have a command-and-control hierarchy.
Such easy solutions are often the wrong ones, although they are applied by many. Only few people appreciate that good practices are hard.
When you aim for an agile business, it is quite an interesting challenge to create multiple independent legal entities, agree on a joint Constitution, elect the top manager democratically, and collaborate with self-employed workers who co-manage the business as stakeholders.
Surprise! You now have a lead-by-example network.
Which is better?
Well, I firmly believe that business networks are more agile, innovative, and engaging than business hierarchies. But the proof of the pudding is in eating your own dog food, and putting money in your mouth. Or something like that.