Uplifting Sri Lankan Apparel Industry Through Innovation Management to Face the Challenges in the Post MFA Era

Abstract

Being the single largest employer in the manufacturing sector Sri Lanka’s apparel industry has grown to be nation’s one of the leading contributors to the export revenue. However, in 2005 Multi-fiber arrangement (MFA); a quota arrangement made by the importing countries had eliminated. This brought critical challenges for Sri Lankan apparel manufacturing sector. Innovation is a tool that enables companies to achieve unique strategic goals. Intensified competition, changing consumer needs and changing business environment are the key drivers for innovation. These factors influence Sri Lankan apparel manufactures towards the need for innovation, thus the key objective of this research is to find out how Sri Lankan apparel sector could uplift themselves through innovation management approaches to face the impacts of MFA phasing out. Hence the research centers around the research question of what are the encountered problems associated in existing innovation management approaches? Research has adopted a qualitative research methodology. In-depth interview method was selected to obtain necessary information. To analyze the gathered information, research has chosen thematic analysis method. Research revealed that recognise innovation as a single discipline, lack of knowledge, leadership and managerial issues, inefficiency, non-collaborative work culture, less motivation,creativity and idea limitation, traditional focus, as some of the main issues in the industry that limit innovation capabilities.