Sources of innovation, innovation capability and firm competitiveness - a SEM mediation analysis in apparel manufacturing firms

In today's unprecedented competitive scenario, it is imperative to draw resources to develop innovation capabilities and competitiveness. The main aim of study is to examine the mediating impact of innovative capability on relationship between sources of innovation and firms' competitiveness in case of apparel manufacturing firms, which is so far unexplored. In this descriptive research study data was collected from 300 respondents in Delhi NCR and analysed using statistical techniques using SPSS and AMOS. It provides empirical evidence for hypothesised relationships between IC, SI and FC, enumerating innovation capability in mediating relationships between sources of innovation and competitiveness. So, 'sources of innovation' directly contributes to 'firm's competitiveness', and also builds 'innovativeness'. The managers of apparel manufacturing firms can capitalise on both internal and external sources of innovation to develop innovation capability and thereby, competitiveness. It serves the case for small firms who contend with larger firms for their resource-base to be innovative. It integrates innovation capability with sources of innovation and competitiveness. The effect of innovation capability through sources of innovations on competitiveness is empirically validated, bridging the gap in literature and offering avenues for future studies.