Abstract/Summary

Dynamic capabilities alone may not sustain competitive advantage, but they may lead to better firm performance through interacting with other capabilities. This paper empirically investigates the role of marketing capabilities on the relationship between dynamic capabilities and firm performance and the effect of environmental dynamism in marketing capability development through a study of 162 top-level managers from the automotive industry in Turkey using multiple regression methods. The results show that the marketing capabilities of firms mediate the relationship between dynamic capabilities and economic performance. However, environmental dynamism did not play a moderating role in the relationships between marketing capabilities and performance. It is concluded that dynamic capabilities are associated with improved firm performance via marketing capabilities. Furthermore, the insignificant impact of environmental dynamism on the development of marketing capabilities leading to better performance was explained by firms’ given over-performing efforts in the context of emerging markets.