I found that bureaucracy correlates positively with the size of an institution and/or corporation: The bigger an institution and/or corporation, the more bureaucracy there is. Large institutions become increasingly inflexible and risk averse, because they have this unfortunate tendency to overvalue what they own and focus on what they may lose, rather than what they may gain. "We've always done things this way" becomes a major obstacle to innovation. The business model becomes sacrosanct, with bureaucracy being its inquisitor. Doubting it obviously makes you an heretic. I will never forget a so-called "innovation workshop" I once attended in a rather big company. The opening statement of the VP in charge was "OK, let's be innovative today. But remember not to touch our successful business model and don't mess with our corporate identity". When CI doesn't stand for Corporate Identity anymore, but for Corporate Inquisition, corporations run into massive problems.
Trust is another big factor. When managers don't trust their staff - often because they don't take the time to get to know them - many will try to control everything. They micromanage and bureaucracy takes off. The employees will react by disengaging and not trusting their managers either. A vicious circle!