Small-World Network
A network where most nodes are not direct neighbors but can be reached from any other node in a small number of steps. Combines high clustering (friends of friends are likely friends) with short path lengths.
Used in the Books
This term appears in 2 chapters:
"...pology enables portfolio diversification without coordination overhead - suitable for unrelated business units Case 2: DHL - Global Logistics as Small-World Network DHL, the German international courier company (Deutsche Post DHL Group, €94 billion revenue, 2022), operates a global logistics network exhibiting s..."
"Effective designs create clusters of dense interaction (teams, communities, business units) with selective links between clusters, following small-world network principles. Managing feedback loops: Amplify positive feedback loops that drive desirable emergence while introducing negative feedback to stabi..."
Biological Context
Neural networks, social networks, and some metabolic networks exhibit small-world properties. Information or disease can spread quickly (short paths) while local clustering enables specialized function. The small-world property explains 'six degrees of separation.'
Business Application
Small-world organizational structure: tight-knit teams (high clustering) connected by bridging individuals who span teams. This balances local cohesion with global coordination.