Innovation through tradition in family firms: Evidence from case studies in Chile

Abstract

Innovation has become a vital element for the growth and projection of organizations. The literature on family businesses presents mixed evidence regarding the orientation of this type of companies towards innovation. Normally, this type of organization is rooted in its history and tradition, conditioning innovation. However, tradition can provide unique distinctive resources to leverage innovation in the family business. In this way, this study is dedicated to the search for evidence that allows advancing in the analysis of the innovation through tradition paradox. To carry out this research, it is qualitative in nature and will use the case study as a methodological tool, family businesses from the Los Lagos region in Chile will be analyzed. The results showed that tradition (legacy knowledge and deep-rooted values and principles) is related to and can drive innovation in the family business.