jats:sec<jats:title content-type="abstract-subheading">Purpose</jats:title>jats:pInnovation through tradition (ITT) is an increasingly important area of research particularly in the creative and cultural industries. The purpose of this study is to develop a process framework of ITT for rural heritage bed and breakfast (B&B) sector and investigate the antecedents and challenges of ITT implementation.</jats:p></jats:sec>jats:sec<jats:title content-type="abstract-subheading">Design/methodology/approach</jats:title>jats:pNine heritage B&Bs displaying successful ITT in Songyang county in China were selected as the research site. Multiple cases of B&B were interviewed, and some observations were conducted. This study adopted the process-oriented reflexive critical incident technique to collect qualitative data and analysed it thematically.</jats:p></jats:sec>jats:sec<jats:title content-type="abstract-subheading">Findings</jats:title>jats:pBased on the findings, a five-phase innovation framework is proposed to demonstrate how ITT could be achieved in practice. These phases are idea generation, idea evaluation, initial implementation, continuing implementation and sustaining improvement. Three key antecedents (experience corridors, networks and institutional pressures) of ITT implementation were also identified.</jats:p></jats:sec>jats:sec<jats:title content-type="abstract-subheading">Practical implications</jats:title>jats:pThis study has showed that rural heritage B&Bs can differentiate themselves from competition by the means of ITT. This study proposes a process framework for this kind of innovation bringing to light the required steps, the antecedents and key activities which the practitioners should pay great attention. This study highlights the needs for continuing and sustaining innovations in the long term.</jats:p></jats:sec>jats:sec<jats:title content-type="abstract-subheading">Originality/value</jats:title>jats:pThis study proposes a novel five-phase process framework of ITT to encompass the innovation activities in heritage setting. For practitioners, this study recommends enhancing the sensing capability of local entrepreneurs through personal travel experience and establishing business networks as the key antecedents of a successful ITT under rural heritage setting.</jats:p></jats:sec>