Moderation effect on Innovation capability: Intellectual Capital and Innovation capability of the Apparel Industry in Sri Lanka

The main purpose of this study is to exhibit the moderation influence of organization characteristics between intellectual capital and innovation capability by constructing the relationship based on Intellectual capital of the Apparel industry in Sri Lanka. The shift of the traditional tangible assets the intellectual capital creates a crucial factor for the achievement of the innovation capability and successful firm performance. This study has been explored: First previous works have almost exclusively focused on the co-alignment between intellectual capital and innovation capability as compelled to deliver competitive advantage and firm performance. Second, while the relationship between intellectual capital and organizational characteristics has been theoretically inspected, and analyzed empirically. Third, the paper investigates the effect of intellectual capital on innovation capability by moderating role. The study was conducted in Sri Lanka. Random sampling technique was used for data collection. The structured questionnaires were administrated as a research instrument to collect the data from the respondents. The results demonstrated that the component of intellectual capital has significant positive relationship and moderated by organization characteristics on innovation capability. The findings of this research will be useful for Apparel Industry to understand and apply intellectual capital to create innovation in their organizations.