Perhaps some people are motivated by fear but I don't see it, myself.
I've seen it kill teams and stifle otherwise good products. It works where a team of less-than-great people come together under a dictator, benevolent or otherwise, who has a strong vision and a stronger temper. It can't last, though, because the dictator is fallible and mortal. It also pushes away talented people who find they can work somewhere there isn't an arsehole making their lives a misery.