THE CASCADING EFFECT OF STATIC AND DYNAMIC MARKETING CAPABILITIES ON THE INTERNATIONAL PERFORMANCE: ANALYZING MARKET ORIENTATION AS AN ANTECEDENT

ABSTRACT This investigation analyzes the relationships between static marketing capabilities (SMC), dynamic marketing capabilities (DMC), and business-to-business (B2B) small and medium-sized enterprises’ (SME) international performance, and the interconnection between SMC and DMC. We also analyze the role of market orientation (MO) as an antecedent of marketing capabilities. A quantitative study was developed using a survey-based method. We collected 335 valid responses from internationalized Portuguese B2B SMEs. Structural equation modeling was used to test the proposed hypotheses. Results show a direct and positive relationship between SMC and international performance. DMC was positively linked with SMC, thus indirectly exerting its influence on international performance. Also, a positive relationship between MO and both marketing capabilities was observed, revealing its antecedent nature over marketing capabilities. This study contributes to marketing capabilities research, given that interrelationships between different types of marketing capabilities were never studied before. Furthermore, it draws managers’ attention to the importance of developing basic marketing-mix capabilities since they appear as the direct link to international performance.