Tradition‐Based Firm: A Systematic Literature Review on Innovation and Tradition in the Organizational Context

ABSTRACT This study aimed to assess the state of the art regarding companies facing challenges of balancing the maintenance of traditions and implementing innovations. The lack of integrative concepts for this type of firm justifies the research. A systematic literature review was conducted on Scopus and Web of Science databases, analyzing data through thematic analysis. Traditions, as expressions of cultural identity and historical heritage, serve as sources of authenticity and value creation, thereby contributing to the tourism and hospitality field by enriching customer and visitor experiences and destination competitiveness. This paper establishes “Tradition‐based Firm” as an integrative concept for businesses that preserve and valorize traditions. Furthermore, it formulates theoretical propositions that enhance understanding of these firms' contexts and their challenges in balancing tradition with innovation to achieve competitive advantage. Lastly, a research agenda is suggested. For practitioners, it offers insights to build tools and strategies optimizing tradition maintenance and innovation implementation.