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EMAC 2023 Annual

Dynamic Marketing Capabilities and firm performance

Published: May 24, 2023


Lancy Mac, University of Macau; Jimmy Lee, University of Macau


Turbulent environment mandates that firms have to be dynamic in order to survive and stay competitive. Based on the theoretical foundation of the dynamic marketing capabilities (DMC) perspective which is a subset of the dynamic capabilities (DC) perspective, firms should be equipped with a network of capabilities namely, proactive market orientation (PMO), market sensing capability, market responsiveness and cross-functional coordination in order to outperform competitors and even "disrupt" their industries and the world. A survey was undertaken in Guangdong Province in China and results show market sensing capability, market responsiveness and cross-functional coordination are positively related to PMO which in turn leads to firm performance. This study contributes to reinforcing marketing’s crucial role in enhancing dynamic capabilities of firms. Results also provide relevant guidelines to managers be stay dynamic in the hyper-competitive market.