The impact of open innovation on international revenues: the moderating roles of digital transformation and strategic differentiation

Abstract

Purpose

The purpose of this article is to explore the impact of open innovation on international revenues, as well as the moderating role of digital transformation and strategic differentiation in the relationship.

Design/methodology/approach

This study develops a theoretical framework to specify a group of hypotheses. A two-way fixed effect model is used to analyze the relationship between open innovation and international revenues, as well as the moderating effects of digital transformation and strategic differentiation, using panel data of Chinese multinational firms.

Findings

Results revealed that open innovation is statistically significantly positive when related to international revenues. Based on the quantitative analysis, the correlation is stronger in sample enterprises with higher digital transformation and strategic differentiation.

Originality/value

This study highlights how open innovation drives international revenues for Chinese listed firms, advancing resource-based view theory in emerging market countries. Introducing digital transformation and strategic differentiation as boundary conditions addresses research gaps and offers practical insights for supporting open innovation for practitioners.

Citation

Wang, X. and Luan, X. (2024), "The impact of open innovation on international revenues: the moderating roles of digital transformation and strategic differentiation", International Journal of Emerging Markets, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/IJOEM-09-2023-1496