Here's an article from the Escapist that nails the nature of Primary Loyalties and how they can contribute to, and accelerate, the collapse of in-game organisations.
To an individual, a failure cascade brings with it a change in that person's identity. Instead of saying he is a member of an alliance, he shifts his perspective locally, to his guild or himself. These changes can fracture an alliance and set the stage for its member guilds to fight among themselves.
Could have been ripped straight from a 4GW field manual.