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In this study, we investigate the interplay between tradition and innovation. In particular, we explore the adoption of a novel and contested category in a tradition-led setting, under the boundary condition of a challenge to traditional practices and prescriptions, and the role of tradition-led organizations in the adoption of that category. We suggest that these issues represent overlooked theoretical phenomena; accordingly, we examine these phenomena and provide novel conceptual explanations. In contrast with previous research, our findings show that social actors’ divergent behaviors can earn them the required credibility to adopt a contested category in a traditional context and that local traditions increase the likelihood of entering into such a category rather than hindering it. Our research setting is the Italian wine industry between 1999 and 2009.

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