"Background: In the current era, innovation has become the basis for the success of all industries. In reality, fast innovation facilitated by rapidly changing technological discoveries is critical to global economic progress.

Aim: The primary goal of this article is to examine the effect of knowledge exchange and development of supervisory support, trust, training, information technology, and industrial cluster resources on innovation capabilities in the dairy sector of Pakistan.

Setting: From a total of 520 small and medium enterprise (SMEs) dairy farms, 227 owners and managers were carefully chosen to participate in the survey.

Method: The current study’s research framework was based on the resources and diffusion of innovation perspective theories. The data were gathered from dairy farm owners and managers in Punjab, Pakistan. SmartPLS-SEM was used to examine the multivariate connection among the variables.

Results: The current research finds that training and development, supervisory assistance, and industrial cluster resources strongly influence knowledge sharing. Furthermore, trust has a favourable influence on innovative capabilities. However, the mediation effect of knowledge sharing (KS) did not support information technology (IT) training and development (T&D) and innovative capabilities (IC).

Conclusion: According to findings in the study, T&D as a form of learning connect employees through the sharing of new ideas, allowing the business to improve and the concept to be modified. This study found that supervisory assistance significantly impacts innovative capabilities and knowledge sharing."