In the 1970s, the economy was reorganised according to Edvard Kardelj's theory of associated labour, in which the right to decision making and a share in profits of socially owned companies is based on the investment of labour. All industrial companies were transformed into "organisations of associated labour". The smallest, "basic organisations of associated labour", was roughly corresponded to a small company or a department in a large company. These were organised into "enterprises", also known as "labour organisations", which in turn associated with "composite organisations of associated labour", which could be large companies or even whole industry branches in a certain area. Basic organisations of associated labour sometimes were composed of even smaller "labour units", but they had no financial freedom. Also, "composite organisations of associated labour" were sometimes members of "business communities", representing whole industry branches. Most executive decision making was based in enterprises, so that these continued to compete to an extent even when they were part of a same composite organisation. The appointment of managers and strategic policy of composite organisations were, depending on their size and importance, in practice often subject to political and personal influence-peddling.