We can tolerate authoritarian regimes in companies, because they're small (relative to countries) and compete in a heavily regulated space. If you want to leave or they fire you, you can generally find a new workplace. Companies play thier game by selling stuff (and doing accounting magic).
On the other hand, when two countries enter fierce competition, it's called "war". People on both sides end up dying. Even a less fierce competition ends up being miserable for everyone. The game has no bounds. And you can't easily quit it and move elsewhere.
That's why we prefer countries to be run with inefficient democratic process - because too much efficiency in a country will make many, many people very miserable.