Mechanism
Sparse Network Topology
TL;DR
Tata Group's sparse hub-spoke topology (degree ~2-3 per subsidiary) enabled portfolio diversification without coordination overhead.
Sparse networks have low edge density - nodes have few connections (low degree). In food webs, compartmentalization creates sparse inter-module connections that prevent cascade propagation. Sparse topology enables diversity and autonomy while limiting contagion - disruption in one module doesn't propagate to others.
Business Application of Sparse Network Topology
Tata Group's sparse hub-spoke topology (degree ~2-3 per subsidiary) enabled portfolio diversification without coordination overhead. When Tata Motors hemorrhaged $400M+ in 2009, TCS grew from $6B to $13B revenue unaffected. Sparse topology trades synergies for autonomy and failure isolation.