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Radiation efficiency of electrically small antennas largely depends on antenna geometry. However, the actual mechanism that governs the antenna radiation efficiency remains unclear, although various models have been developed since the 1940s. Extant circuit models are either intuition-based or mathematic representations of input impedance/far-field spherical mode functions for structurally simple antennas with limited uses and physical insight. In this article, a recently developed physical micromodeling circuit (MMC) model is utilized to explain the nature of radiation of an electrically small antenna of arbitrary configuration. It is theoretically discovered and experimentally validated for the first time that the radiation efficiency decisively depends on mutual radiated power associated with partial segments of the antenna. A circuital figure of merit for describing the total mutual radiated power is introduced to quantify the measure. The graphical representation of the figure of merit called the holographic radiation diagram is also proposed for illustrating the correspondence of the positive and negative radiated power and the antenna structure. The applications of the proposed theory to antenna design is demonstrated by designing a highly efficient loop antenna. The physical circuit model paves a new way of understanding electromagnetic (EM) radiation problems. [ABSTRACT FROM AUTHOR]