The death spiral of company innovation is when a critical mass of people realize that raising personal status via politics has far more benefits.
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Startups often abuse this to saueeze out free work. Although impact is more obvious, the goals are so high that any impact can be viewed as tiny from the right perspective.
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A strong culture simply is a working community. Leadership and other forms of hierarchy are tied into the company.
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A non-working pseudo community is held together by protocols and professionalism. Contractors almost by definition cannot be part of a community.
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When employees start acting more and more like contractors and innovation is required to survive...be very wary...
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