“Innovation” is a fashionable word in the current era of knowledge based economy, For today’s business organizations, creation and exploitation of knowledge has become a competitive advantage. Moreover, the global competition has been strengthened due to the rapid developments in information technology. Hence, organizations are searching for innovative products, processes, and technologies to win the markets due to this competition. Thus the importance of innovation performance in presence of R&D, knowledge management practices and market oriented organization culture. This paper intends to elaborate these dimensions which are expected to influence innovation performance of an organization. A conceptual framework is developed by accounting, direct impacts from R&D Management Practices, Knowledge Management practices, and Market Orientation on Innovation Performance. In addition, the proposed framework tests moderating impacts by Resource Support and Management Style & Leadership on the above mentioned relationships.
The research framework is supported by well established literature and the conceptual framework is developed with a positivistic approach. The proposed model will be used to survey the software development industry in Sri Lanka. However, this research framework is capable of examining the same research problem in other industries.