Feature source providers that do not support circular arcs create segmented lines to simulate the curves of an arc. This is called tessellation. You can specify the arc-chord distance, which determines the density of the segmented lines, for such providers. For example, this setting will apply to SHP (regardless of the coordinate system) and Oracle (when a geodetic coordinate system is used).
To specify an arc-segmentation value
The setting is available only for data stores that do not support circular arcs.
To use the arc-segmentation settings of the native (or target) data store when saving, exporting, or using Bulk Copy