The evolution of craft work in the strategic development of a family enterprise

Research Summary Craft firms characterized by a humanistic approach to work face a tension between adhering to pure craft principles and embracing industrialization. This challenge is heightened in family‐controlled craft firms, striving to uphold tradition while adapting to change. This study examines how craft work evolves along the trajectory of entrepreneurial development through a case study of Thun, a third‐generation family craft firm. We identify a set of mechanisms and four configurations—pure, technical, narrative, and ecosystemic—through which craft work evolves over time. These configurations not only preserve traditions, but also infuse them with entrepreneurial spirit, reinterpretation, and deep innovation. This study contributes to the craft work literature by moving beyond static perspectives and revealing the dynamic interplay between different craft configurations. Managerial Summary Craft firms, which emphasize a humanistic approach to work, often struggle with the tension between preserving traditional craftsmanship and embracing industrialization. Our study of Thun, a third‐generation family craft firm, provides practical insights for managers by identifying a set of mechanisms and four configurations—pure, technical, narrative, and ecosystemic—that show how craft work can evolve over time. Managers can use these configurations to balance tradition and innovation, and inject entrepreneurial spirit into craft processes. Our findings underscore the importance of managing this balance for sustainable competitiveness and fostering an entrepreneurial firm culture that supports both artisanal and industrial production. Our study also provides a practical guide for craft firms seeking to evolve strategically, ensuring the integration of tradition with contemporary entrepreneurial development.