Abstract:
Purpose: The handicraft industry in Sri Lanka is an interesting industry coming from
the past which is mostly attracted by the tourists who travel in Sri Lanka. The main
objective of this study is to investigate the growth determinants of the firms in the
handicraft industry in Sri Lanka.
Methodology: The study used the deductive approach; following the survey method to
collect data from 180 handcrafters. Acknowledging the progressive factor conditions in
Porter's Diamond model, knowledge; experience; technology; infrastructure facilities;
and training factors selected as the growth determinants.
Findings: Multiple regression results revealed that knowledge (b = 0.43), technology (b
= 0.37), and infrastructure facilities (b = 0.13) have a significant and a positive influence
on the growth of the handicraft business. However, experience and training were not
significant factors conditions to the growth of the handicraft.
Implications: Handicraft industry is a major source of income for rural communities
and it is a fast-growing industry in Sri Lanka. Results imply that the government and the
responsible authorities should provide more concern to invest on new technological
innovations, training facilities and supportive services such as IT facilities, export
facilities and so on. Attracting youth participation into the industry needs vital
attention. Future researchers can go upon random larger sample of handcrafters from
various geographical locations to provide more generalizable results.
