Biology of Business

Inter-Organizational Fractals

TL;DR

When fractal networks extend across legal entity boundaries—through tiered suppliers, franchises, or investment syndicates—they achieve 15-25% greater resilience than firms with transactional relationships.

By Alex Denne

Mycorrhizal networks demonstrate that fractals aren't confined to single organisms - they span boundaries, connecting multiple plants into resource-sharing networks. The distributed fractal network stabilizes forests through interconnection.

Business Application of Inter-Organizational Fractals

Fractal logic transcends organizational boundaries. Supply chain fractals (Toyota's tiered suppliers), franchise fractals (McDonald's), and investment fractals (VC networks) all show self-similar branching across legal entities. These succeed with stable relationships, repeated interactions, aligned incentives, and clear hierarchies.

Related Mechanisms for Inter-Organizational Fractals

Related Organisations for Inter-Organizational Fractals

Related Organisms for Inter-Organizational Fractals