Tradition, entrepreneurship, and innovation: The craft of Japanese fine dining

<jats:title>Abstract</jats:title><jats:sec><jats:title>Research Summary</jats:title><jats:p>This study explores how traditional craft produces novelty, which appears to be at odds with its emphasis on continuation. While prior research has explored how tradition is rediscovered and revived from the past, traditional craft can produce intrinsic novelty potentially through its own repetitive acts. This study examines a Japanese cuisine <jats:italic>Kaiseki</jats:italic>, which is traditional but simultaneously innovative. The analysis of a well‐known chef's design processes reveals that the chef designs novel dishes by responding to what has been done before, making something better and differently and thereby going beyond the limit of the tradition; <jats:italic>Kaiseki</jats:italic> tradition is re‐enacted through such practices. A process philosophy of Gills Deleuze is engaged to explain our concept of “tradition as capacity” as well as “tradition as object.”</jats:p></jats:sec><jats:sec><jats:title>Managerial Summary</jats:title><jats:p>Tradition is now seen as important source of value. This study explains how craft can be both traditional and innovative. Typically, innovation has been explained by recombination with new technologies and restoration and reinterpretation to reinvigorate identity rooted in the past, this study sheds light on the intrinsic novelty within the practices of craft. This novelty is evident in traditional Japanese cuisine, called <jats:italic>Kaiseki</jats:italic>, which is traditional but also innovative because customers seek novel exquisite experience as they do in any Michelin Guide starred restaurants. Through the analysis of a chef's practices, we propose a new conceptualization of tradition as capacity. The creative force of this tradition as capacity is important for creating new opportunities and novel values.</jats:p></jats:sec>