Innovation through tradition: To what extent can drawing on tradition as a resource promote innovation at German wineries?

Abstract

How can a company be both tradition-conscious and capable of innovation, and use this to its advantage? This question arises in the German wine industry, which is characterized by centuries-old viticultural traditions and a strong cultural rootedness, while at the same time facing new challenges such as climate change, global competition, and changing consumer expectations. Based on qualitative expert interviews with nine German wineries, this study examines the extent to which tradition can serve as a strategic resource to foster innovation. Using the VRIO framework and a further development of the Innovation-through-Tradition model, the study shows that tradition possesses valuable, rare, and difficult-to-imitate characteristics, creates authenticity and differentiation, and thus acts as a catalyst for sustainable innovation.

Keywords: germany; innovation; resource-based view (RBV); tradition; wine industry