The productivity and quality of working life of operations within a firm with multiple operating units can be improved by the diffusion of incremental improvements from one unit to another. The opportunities and problems experienced by one large multi‐unit firm in diffusing employee innovations between units are examined. It was found that incremental or Minor Technical Improvements (MTIs) do diffuse between units. Improved communication and increased under standing of the innovation process by management may increase the amount of MTI diffusion. The costs and benefits of MTI type innovation and diffusion are explored. Opportunities for more research into the diffusion of MTIs in other multi‐unit firms are discussed.
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