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Why Dynamic Capabilities Matter in International Marketing

What is a Dynamic Capability?

Before taking a deep dive into dynamic capabilities, let's discuss what they are and how they can matter to you. Dynamic Capabilities is the measure of how well a company can adapt to the market. A market in this case is defined as the audience that the product or service will be marketed to. While the market is a broadened area in which the product/service is sold. For instance, a product sold in America will need to adapt to American culture, such as have English availability. However, this may be specified as a more direct target audience is chosen. If the audience is decide to target those that live in large cities they then may

Dynamic Analysis of Resources and CRM

In the article The Role of Marketing Function for Competitive Advantage. They describe the dynamic capabilities in relation to the Customer Relationship Management (CRM) system. In order to appeal to the consumer base and adapt to the market the must understand how to ‘manage’ or work with the customer. The article uses the example of sustainability being apart of the CRM and then thus must be apart of the company’s values and operations. However, the CRM is the focus to being successful in the adaption process. Additionally, utilizing sources such as social media increases the opportunity for CRM to adapt.

How Engagement can Boost Resources

The journal also mentions the importance of engagement. From a social media standpoint interacting with the consumer gives not only service but is a psychological state in which the customer gets to be co-creative and interactive with a brand creating a lasting impression. Furthermore, employee engagement is also a part of making not only an adaptable business, but to make an adaptable and ‘likeable’ environment. Employees who are engaged in their work a most likely to be invested in the work that they do. Even more so companies that engage with their employees also increase the retention rate and increase customer satisfaction (First Up, 2021). This engagement is branched out to other areas of the business such as supply chain engagement and even organization engagement. It requires being able to have B2B relationships that a company can adapt to for new environments.

The journal has a fabulous way that they have identified dynamic capability:

“In view of the resources, the dynamic is in the ability, as well as the capacity of organizational learning that generates additional opportunities from time to time, complementary, interrelated and co-specialization which are all talking about how to combine resources to create value and the idea of a combination of resources and recombination is central to the literature on capabilities” (Sarkum & Syamsuri, 2021).

Dynamic Marketing Capabilities that matter:

I think this is a very well put way to explain the idea of Dynamic Capability to an entire company. However, viewing this from a dynamic marketing capability (DMC) setting allows the company to learn from the resources they have available (Employees, B2B, Customers, etc.) to gain a foundation in how to adapt to various markets and target audiences. This could be a new product entering the market that attracts new consumers. Or this could be a new geographical location that the company is now operating at. Furthermore, the DMC allow them to review the market, evaluate processes, and how to develop/implement responses to changes in the market (Sarkum & Syamsuri, 2021).

How does this give competitive advantage?

Thus far I agree with the author’s findings on DMC. In connection to the competitive advantage, I also agree with the concept of how the firm’s performance plus their engagement creates the competitive advantage. For instance, when a company is performing well, and they are engaging with the appropriate channels they are performing at the advantage in comparison to their competitors. For example, look back at the Wendy’s ‘come up’. It all started with a tweet “roasting” McDonald’s later leading to the ultimate fast-food chain Twitter arguments. In Wendy’s response to the engagement and knowledge of what consumers want from fast food chains (DMC +Engagement), they experienced a 49.7% growth in revenue (Firm performance) profiting more than $64 million (Deputy, 2018). Wendy’s has since then continued to bring in a greater performance with their engagement efforts. The below screenshot is from the journal and is a GREAT way to envision the DMC and competitive advantage.

Why should companies implement this process?

Companies need to have dynamic capability to be successful in marketing. Otherwise, how do you know the international market you’re entering? Without understanding and knowing who the target audience truly is and the resources that are available (whether tangible, digital, etc.), a company cannot perform to its maximum potential. Although a company may offer a product in one (or another country) that new country may not have the same response to the product as others. For instance, sustainability in some countries is highly valued (and even illegal if not done properly). This is apart of adapting to the market. It may mean a company needs to change its packaging to 100% recycled paper instead.


Deputy. (2018, April 26). How Wendy’s Used Social Media to Profit $64M in a Year. Retrieved from Deputy:

First Up. (2021, October 14). Significance of employee engagement. Retrieved from First Up:,higher%20quality%20of%20work%20produced.&text=By%20investing%20in%20employee%20engagement,quality%2C%20and%20retain%20top%20talent.

Sarkum, S., & Syamsuri, R. (2021). The Role of Marketing Function for Competitive Advantage: Acces la Success. Calitatea, 22(180), 32-39.

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