Abstract:
This study explores how leader support influences open innovation, with particular emphasis on the mediating role of team collaboration within the Sri Lankan apparel industry, specifically in the Anuradhapura District. The apparel sector, a key contributor to the national economy, is facing intensifying competition and is hindered by limited access to technology, infrastructure, and skilled labour in rural regions. Drawing on Leader–Member Exchange (LMX) theory and open innovation frameworks, the research investigates internal organisational dynamics that affect innovation performance. A quantitative, descriptive, and explanatory design was employed, using a structured bilingual questionnaire administered via Google Forms. The sample consisted of 200 staff-level employees from five apparel factories, selected through convenience sampling. Data were analysed using SPSS, including descriptive statistics, correlation, regression, and mediation analysis. The findings indicate that leader support significantly enhances both team collaboration and open innovation. Furthermore, team collaboration mediates the relationship between leader support and open innovation, highlighting its essential role in facilitating knowledge sharing and innovation outcomes. The study underscores the importance of cultivating a collaborative organisational culture through effective leadership, particularly in resource-constrained environments. These insights contribute to the academic discourse on human resource management and innovation and offer practical guidance for industry leaders and policymakers seeking to improve innovation capabilities in rural manufacturing settings.