The article discusses the importance of organizational capabilities and

processes in adapting to rapid environmental changes in today's business

environment. It introduces the concept of dynamic capabilities (DCs) as a
means to attain and sustain competitive advantage in dynamic markets. While
early research proposed a direct relationship between DCs and performance
outcomes, more recent literature suggests a more complex relationship. The
article explores the role of DCs in matching environmental demands and
creating market change, emphasizing the need for organizations to reconfigure
their resources and orchestrate their capabilities. The study also highlights the
importance of incorporating marketing capabilities within the DCs framework,
as marketing plays a crucial role in generating knowledge about customer
needs and contributing to organizational performance. Two specific types of
dynamic marketing capabilities (DMCs) are examined: proactive market
orientation (MO) and value innovation. The article concludes with a description
of the research methodology, data analysis, findings, limitations, and
implications for both academia and practice.

The article discusses the concept of dynamic capabilities (DCs) and their role in
attaining and sustaining competitive advantage in changing environments. DCs
are defined as the capacity of an organization to purposefully create, extend, or
modify its resource base. They are contrasted with operational capabilities,
which focus on sustaining the status quo and day-to-day problem-solving.
Marketing capabilities, specifically dynamic and operational marketing
capabilities, play a strategic role in the DCs framework by generating
knowledge about customer needs, competing products, and distribution
channels.

Proactive market orientation (MO) is highlighted as a foundation of modern

marketing and a key component of DCs. It involves discovering, understanding,
and satisfying both stated and latent customer needs. MO is closely related to
DCs and, under specific conditions, can function as a DC. In dynamic
environments, organizations need to intensify their proactive MO to achieve
and sustain competitive advantage.

Value innovation capability is another important aspect of DCs. It refers to an

organization's ability to systematically generate value innovation initiatives that
create new and superior customer value by redeveloping the business model
and shifting roles and relations among industry players. Value innovation
entails creating differentiation in the marketplace and goes beyond traditional
offerings. It requires realigning and reconfiguring organizational resources and
capabilities. Customer knowledge and customer value play a critical role in
value innovation.

The article also discusses induced market turbulence, where organizations

intentionally manipulate and modify the market environment to their
advantage. This can be achieved through strategies such as manipulating
market structure, changing market behavior, creating market change through
new products or services, and influencing the macro-environment through
lobbying and political influence.

Overall, the article emphasizes the importance of dynamic capabilities,

including marketing capabilities, in adapting to changing environments,
creating customer value, and achieving competitive advantage. It highlights the
interconnectedness of various capabilities and their role in resource allocation,
configuration, and reconfiguration.

The article discusses the development of organizational capabilities and their

impact on marketing activities, customer value, profitability, and market
effectiveness. It highlights the importance of proactive market orientation
(MO) and value innovation in shaping marketing capabilities. Organizations
with superior proactive MO can better understand and satisfy customer needs,
leading to more effective product development, market positioning,
segmentation, and targeting. Value innovation involves creating new value for
customers through resource accumulation, configuration, and exploitation. It is
hypothesized that dynamic marketing capabilities (proactive MO and value
innovation) positively impact operational marketing capabilities. Operational
marketing capabilities play a critical role in implementing marketing activities
that create unique customer value and contribute to competitive advantage,
profitability, and market effectiveness. The study also emphasizes the role of
dynamic capabilities (DCs) in building and reconfiguring operational
capabilities, and their potential to induce market turbulence. The ability to
induce market turbulence allows organizations to shape the behavior and
structure of the market, leading to superior outcomes. It is hypothesized that
the relationships between proactive MO/value innovation and customer value,
profitability, and market effectiveness are mediated by operational marketing
capabilities and induced market turbulence. The article highlights the
importance of understanding customer needs, engaging in value innovation,
and leveraging dynamic marketing capabilities to achieve competitive
advantage and organizational success.
This study contributes to the literature on dynamic marketing capabilities
(DMCs) by proposing a conceptual framework that explains how DMCs are
linked to organizational outcomes. The framework emphasizes the role of
inducing turbulence in the market and reconciles the debate about whether
marketing capabilities can be truly dynamic. The study also highlights the
mediating role of operational marketing capabilities in the relationship
between DMCs and organizational performance. Furthermore, the research
focuses on two specific DMCs: proactive market orientation and value
innovation, providing actionable measures for managers to evaluate and
implement. The study suggests that managers should invest in developing
DMCs strategically and emphasizes the importance of continuously monitoring
their effectiveness in dynamic markets. The findings also highlight the value of
market-driving strategies, such as value innovation and inducing market
turbulence, in creating new value and outperforming competitors. The study
has limitations, including its cross-sectional design and reliance on self-
reported data, suggesting opportunities for future research using longitudinal
approaches and data triangulation.
Hypotheses
The development of organizational capabilities is closely tied to understanding
the market's evolution and uncovering potential opportunities and deficiencies.
Proactive market orientation helps organizations discover and meet customers'
latent needs, leading to more effective decision-making. Value innovation
involves creating new value for customers in novel ways, which requires
resource accumulation and exploitation. It is hypothesized that dynamic
marketing capabilities, such as proactive market orientation and value
innovation, positively impact operational marketing capabilities, which in turn
enhance customer value, profitability, and market effectiveness.

Dynamic capabilities (DCs) are necessary for building and reconfiguring

operational capabilities, impacting their efficiency and effectiveness.
Organizations with superior reconfiguration capability can seize opportunities
by combining resources and processes in new ways. The relationship between
proactive market orientation/value innovation and customer value,
profitability, and market effectiveness is mediated by operational marketing
capabilities.

Organizations with specific dynamic marketing capabilities can induce market

turbulence, shaping the behavior, structure, and preferences of market
participants. This can lead to competitive advantage and superior outcomes. By
influencing the political and market environments, firms can create disruptions
that are costly for competitors to imitate or avoid, resulting in favorable
outcomes.

Induced market turbulence positively affects customer value, profitability, and

market effectiveness. Sustainable competitive advantage is related to creative
destruction, where disruptive innovations force less innovative firms out of the
market. Firms with specific dynamic marketing capabilities may induce market
turbulence, leading to superior organizational outcomes. The relationships
between proactive market orientation/value innovation and customer value,
profitability, and market effectiveness are mediated by induced market
turbulence.
 Organizational capabilities are developed based on market knowledge and
help identify opportunities and deficiencies.
 Proactive market orientation enables organizations to discover and satisfy
latent customer needs.
 Value innovation involves creating new value for customers through resource
accumulation and exploitation.
 Dynamic marketing capabilities (proactive market orientation and value
innovation) positively impact operational marketing capabilities.
 Operational marketing capabilities enhance customer value, profitability, and
market effectiveness.
 Dynamic capabilities (DCs) are necessary for building and reconfiguring
operational capabilities.
 Organizations with superior reconfiguration capability can seize opportunities
by combining resources and processes in new ways.
 The relationship between proactive market orientation/value innovation and
outcomes is mediated by operational marketing capabilities.
 Specific dynamic marketing capabilities can induce market turbulence,
shaping the behavior and preferences of market participants.
 Influencing the political and market environments can create disruptions that
provide a competitive advantage.
 Induced market turbulence positively affects customer value, profitability, and
market effectiveness.
 Sustainable competitive advantage is related to creative destruction, where
disruptive innovations force less innovative firms out of the market.
 Firms with specific dynamic marketing capabilities may induce market
turbulence, leading to superior outcomes.
 The relationships between proactive market orientation/value innovation and
outcomes are mediated by induced market turbulence.