No, in Blender it means how the normals are aligned.
You can set "flat" or "smooth" - flat means that normals are perpendicular to the triangles / quads - smooth means that normals align where triangles / quads meet each other.
Both have advantages and disadvantages.
Sometimes you want "hard switches" of normals on a generally "smooth object" - that's the problem.
Of course .. for this problem there are solutions.
Yes, you can also set Blender rendering to "smooth" or "flat" which is what you mean.
Flat means you can see the triangles more clearly.
Smooth means you can get a first impression on how the final object will look under lighting influence.
I don't know exactly, but I think jME doesn't have flat shading anymore.
It was last seen in jME 2.0 if I recall correctly.
The default shader uses Phong - but you can select 'per vertex' or 'per pixel' calculation.