Final answer:
The term for when companies regularly make small adjustments to improve performance is called incremental innovation. This involves making small-scale improvements and is also related to the concept of negative feedback, which corrects systems to ensure they remain efficient.
Step-by-step explanation:
A type of change a company makes when they regularly tweak and nudge their systems to improve performance is called a(n) incremental innovation. Incremental innovation involves making successive, small-scale improvements or updates to a product, system, or process.
This strategy allows companies to maintain a competitive edge and adapt to changing market conditions or technologies without overhauling their entire operation.
On the other hand, the process described also resembles a form of negative feedback, where corrective action is taken to remedy a maladjusted system back toward equilibrium.
Negative feedback loops are essential within businesses to ensure that their operations remain efficient and effective, and they consistently meet the company's objectives and customer expectations.