HOW DO ENTREPRENEURS’ PERCEPTIONS ON INNOVATION EFFECT ININDUSTRY COMPETITIVENESS AND SUSTAINABILITY

Abstract

Entrepreneurs‘ perceptions on innovations remain crucial in successfully facing competitiveness challenges in industry enterprises that produce range of products in economies in transition all over the world. Economies transit from factor driven to efficiency driven in which use of modern technology increases. This paper explores the effects of entrepreneurs‘ perceptions on product innovations which have impact on industry enterprises sustainability in leather products and footwear industry of Sri Lanka. This country is in transition from factor driven production process towards efficiency driven production processes based on technology. An expert reviewed and piloted questionnaire was used to gather primary data related to entrepreneurs‘ perceptions and competitiveness of enterprises in the industry. The research has found that the majority of entrepreneurs do not have an intention to engage in new product innovations in near future. They use designs already available which lead to competiveness and sustainability issues in this industry. Level of innovations and use of Internet for routine business activities in enterprises in the industry remains low. No similar research study done before in this industry thus the study is an original work which adds knowledge for academic and development purposes