Abstract—Innovation depends heavily on knowledge. Intellectual capital is a vital asset of an organization in a knowledge-based economy. The intellectual capital for Innovation capability in advance of motivation should lead to superior performance. This study traces the impact relationship of intellectual capital on innovation capability and organizational performance of the Apparel industry in Sri Lanka for long-term survival. The quantitative method is adopted and the structured questionnaires were administrated as a research instrument to collect the data using simple random sampling technique. Pearson Correlation was used to test the relationship between the components of intellectual capital, innovation capability and the performance of Apparel Industry. The results demonstrated that the component of intellectual capital has significant positive relationship with innovation capability and the organizational performance. The findings of this research will be useful for Apparel Industry to understand and apply intellectual capital to create innovation in their organizations.

Index Terms—intellectual capital, human capital, social capital, organizational capital, Innovation capability and organizational performance

Cite: Xiaobo WU and V. Sivalogathasan, "Innovation Capability for better Performance: Intellectual Capital and Organization Performance of the Apparel Industry in Sri Lanka," Journal of Advanced Management Science, Vol. 1, No. 3, pp. 273-277, September 2013. doi: 10.12720/joams.1.3.273-277