The role of inter-firm dispersion of international marketing capabilities in marketing strategy and business outcomes

Despite their increasing practical and theoretical significance in a globalizing world, marketing capabilities in an international context and their inter-organizational dispersion remain in the shadow of research. Specifically, the usefulness of direct effects of capabilities and their dispersed organization on certain strategies and firm performance is unclear. Drawing on the Dynamic Capability framework, this study investigates boundary conditions that guide the management of capabilities dispersion and its effects on strategic actions and performance. Employing survey data from a sample of firms, findings show that dispersed capabilities are advantageous due to their ability to help firms accomplish key performance objectives indirectly through developing ability to manage overseas elements (adaptation strategy). Furthermore, firms' decisions regarding dispersing capabilities are contingent where market dynamism and coordination moderate the dispersion-adaptation link. The study deepens knowledge on additional ramifications of marketing capabilities, provides new lenses to view marketing dispersion, and offers guidance to managers.