Exploring the unknowns of international open innovation and international dynamic capabilities on the speed of innovation and firm international performance: A strategic view

Technological advancements are forcing firms to innovate quickly to sustain a competitive advantage. However, despite theoretical arguments and empirical findings, the mechanisms that influence the speed of innovation and firms’ international performance are surprisingly unexplored in the international business literature. Therefore, this study offers theoretical rigor through the resource-based view and dynamic capabilities framework to improve our understanding of how firms can achieve international performance. This study develops a conceptual model to investigate the joint effects of international open innovation, international dynamic capabilities, and the speed of innovation on firms’ international performance. This study empirically examines a conceptual model using 303 valid responses from marble manufacturers in the province of Khyber Pakhtunkhwa (KP) Pakistan. The results confirm that international open innovation has a positive and significant effect on the international performance of marble manufacturers. The findings also suggest that international open innovation and international dynamic capabilities together influence the speed of innovation and the international performance of marble manufacturers. This study concludes that strong dynamic international capabilities can turn open international innovation into a source of international performance for manufacturers through the speed of innovation. Several theoretical and policy implications are discussed.