The Impact of Strategic Innovation on Employee Performance with The Mediating Role of Job Satisfaction

Abstract

Strategic innovation has increasingly become a critical element for sustaining competitiveness in apparel industries. In Sri Lankan context, contradictory findings are available which were addressed on the relationship between strategic innovation on employee performance. The existing empirical gap concentrates on giving attention on this aspect. Therefore, the objectives of this study were as to analyze the impact of strategic innovation on employee performance, emphasizing the mediating role of job satisfaction of selected apparel firms in the Nuwara Eliya District of Sri Lanka. Data from 346 employees across three apparel firms were collected and analyzed using descriptive statistics, correlation, and regression analysis. Results indicate high levels of strategic innovation, job satisfaction, and employee performance, with a strong, positive correlation between strategic innovation and employee performance. Multiple regression confirms that strategic innovation significantly predicts employee performance, with job satisfaction mediating this relationship. The study underscores the importance of integrating employee-centered innovation strategies in enhancing productivity and morale.