*K.M.V. Sachitra1 and P.J. Kumarasinghe2
The main purpose of this study was to determine the factors which significantly influence innovativeness of tea manufacturing and exporting firms in Sri Lanka. The research model was totally based on the knowledge obtained from literature and it was consisted of three main factors, corporate culture, working environment and networking. In order to test the model, primary data were collected through e-mail from the CEO/Owner of tea manufacturing and tea exporting firm using a structured questionnaire. Discriminant analysis and cross-tabulation analysis were performed to determine the significant difference between means of responses from more or less innovative companies. Findings of the study revealed that the drivers of innovation in tea manufacturing and exporting firms are corporate culture, working environment and networking. The main barriers for innovation of both more and less innovative companies were financial constraint and qualified human resources.
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