Innovation in tradition-based firms : a case study on the paradox between tradition and innovation in a craft bakery

Abstract

In this thesis, I aimed to find out more about the underexplored relationship between tradition and innovation in a craft bakery, and how the management of this relationship may contribute to the success of a company in this industry. As Lewis (2000) regards the relationship between old and new as a tension, I used the model she developed as the theoretical framework to see how this tension can be managed effectively. I chose to conduct a case study according to the guidelines of Yin (2018) with the craft bakery Kaiser. Die Vollkornbäckerei GmbH, which I considered to effectively manage the paradox which arises when tradition and innovation interact. My primary data came mainly from 15 interviews that I conducted with seven members of the organisation and eight customers. I analysed the information thematically after Braun and Clarke (2006). For secondary data, I included relevant external documents such as newspaper articles, plus internal documents such as turnover from the last years. In the analysis, I found two core traditions of the company and six types of relationship between tradition and innovation. I found five of these in the literature, and I additionally identified a sixth during the case study, namely that the old becomes the new. Since I found this kind of relationship to be received very positively by customers, it is advisable to further investigate this relationship between tradition and innovation in other craft areas. Through my intensive engagement with the company, I make concrete recommendations to Kaiser. Die Vollkornbäckerei GmbH, including further development of their management model. Also, I am able to make recommendations for other traditional companies based on the company’s strengths.