1. ¹Department of Business Administration, College of Business, University of Illinois at Urbana-Champaign, USA
2. ²Robert J. Trulaske, Sr. College of Business, University of Missouri–Columbia, USA

Correspondence: E Fang, Assistant Professor of Marketing, Department of Business Administration, College of Business, University of Illinois at Urbana-Champaign, Champaign, IL 61801, USA. Tel: +1 302 831 6966; Fax: +1 217 334 7969; E-mail: er.fang@gmail.com

Received 26 January 2007; Revised 25 February 2008; Accepted 29 February 2008; Published online 15 January 2009.

Abstract

The influence of firms' dynamic capabilities on performance has been well articulated in the strategy literature. Yet conceptualization and operationalization of dynamic capabilities in marketing function have not been attempted, and empirical evidence substantiating the effect of dynamic capabilities is scarce. This research develops a conceptualization of marketing dynamic capabilities (MDCs), investigates their development in international joint ventures (IJVs), and explores their effect on IJVs' performance and competitive advantage. Using a dyadic dataset collected from top managers of IJVs in China, as well as objective performance data collected separately, the study found empirical support for the effect of MDCs on IJVs' competitive advantage and performance. In addition, MDCs are found to be influenced by IJV resource magnitude, resource complementarity, organizational culture, and organizational structure. The theoretical implications of our findings and future research directions are also discussed.