By incorporating a strategic alignment perspective, we investigate how complementary capabilities, i.e., IT flexibility, a firm’s networking capability and absorptive capacity influence firms’ level of innovation. We do so, by empirically validating our main research question and associated research model using PLS-SEM, i.e., causal modeling on a sample of 322 international firms. Our research model draws upon foundational and empirical work and provides guidance on how strategic alignment can drive incremental and radical innovation capabilities. Outcomes of the analyses substantiate that all measurements and indicators are valid and reliable. Moreover, this study also uncovers a significant positive relationship between a firm’s degree of strategic alignment and incremental and radical innovation capabilities. Our study demonstrates the importance of strategic alignment between the three investigated organizational capabilities in the process of facilitating enhanced innovation capabilities. We contend that the inability of firms to innovate is, in part, due to the lack of strategic alignment, i.e., synergetic effect. As such, this work contributes to the current practical and theoretical knowledge base of both strategic alignment and firm innovation literature. This article concludes with a discussion and conclusion, outlines limitations of the current study and present some direction for future research