He started with "if markets are so great and stuff, why do companies run like soviets & chiefdoms in practice? Why doesn't the product team just contract a UI designer, a testing team and such. Hi solution was "transaction costs." IE, it's too hard to find a designer every time you need a button.
Economics and social science generally is prone to a "defend my model" problem. Once you have a model, there's a tendency to see everything in terms of that model. A Coasian sees everything in transaction costs terms. Coasians ran around
This author seems to see everything in incentive & game theory terms. Management theory often prefers group psychology explanations like Dunbar's number.
IMO, you should probably keep all in mind at once, and remember that none are entirely true. Even if you see the problem as "Prisoners Dilemma," the solution may not be "breaking the prisoner's dilemma."
Human cooperation in groups to achieve aims is basically the secret sauce of human civilization, culture & what makes us different from other animals. If it could be predictably engineered, a lot of problems would have been solved already.
Most, seemingly common sense solutions fail miserably. Trying to break prisoners' dilemmas by nailing all responsibility to someone (a) may be a lot more disruptive and aggressive than you imagined and (b) will often result in elaborate CYA responsibility avoidance. See enterprise consulting for a snapshot of a mature system described this way.
One way or another, this problem has occured to many people over the years. It's not an easy one. Perhaps, it's the hard question of social science.