Although most of the studies examined diversified sources of sourcing modes for technology, they concentrated either on the mode of sourcing or on the difference between sources within and outside the firm. The paper extends such studies by classifying multiple sourcing modes of technology through factor analysis and testing these in the context of a linkage with innovative capabilities. From a sample of 119 manufacturing firms in Pune, India, four different types of sourcing modes are categorized, including partnership-based, market-based, value-chain-based, and internal sourcing. Besides this, the study highlights the fact that these modes of sourcing have highly significant relationships with factors like absorptive capability and competitive environment. The statistical results indicate that such types of sourcing differ, as they impact a firm’s innovative capacity.