Innovativeness of Sri Lankan it Firms: The Roles of Knowledge Management and Dynamic Innovation Capabilities

Abstract

The present study explores the mediating role of dynamic innovation capabilities, focusing on the relationship between knowledge management and innovativeness in Sri Lankan IT firms. Survey data were collected from 197 IT firms and the analysis indicates that dynamic innovation capabilities fully mediate the relationship between knowledge management and innovativeness. While contributing to the ongoing attempt in explaining how knowledge management practices lead to innovations, the study suggests that managers should pioneer in building dynamic capabilities in order to gain competitive advantage through innovativeness in a dynamic environment.