Transformative Marketing Capabilities - An exploratory study of marketing capabilities in firms transforming markets

Abstract: The increased pace of radical innovations and business renewal as a consequence of elevated market turbulence has spurred the acceleration of market transformations. Increased market dynamics also alter common marketing practices, enlarging the gap between such market complexity and firms' marketing ability to cope with the change. Altogether calling for theoretical comprehension and managerial receptivity. This study thus aims to empirically investigate (1) what marketing capabilities that are apparent in firms deliberately attempting to transform a market and (2) investigate the interplay and evolution of such capabilities. A dual research strategy was applied, firstly investigating marketing capabilities through an interview study of firms with transformative intents. Secondly, a single case study was conducted at a transformative firm, exploring the capabilities' interplay and evolution. The findings of the interview study showcased how the designation of a firm's vision combined with stakeholder- and knowledge-management is central in transformative marketing practices, resulting in three distinct marketing capabilities in such firms, namely: the Capability of Knowing Why, the Capability of Multilateral Stakeholder Engagement, and the Capability of Knowledge Gathering & Dissemination. Further, the case study implied three distinct evolvement factors to affect such capabilities' complexity and interplay as the firm progresses, namely Systematization, Elevated Stakeholder Repertoire, and Product Readiness. The results contribute by reducing the marketing capability gap within both theory and practice by respectively adding to, and collectively bridging, the theoretical fields of Market Transformation with Marketing Capabilities in dynamic contexts. It contributes to managerial and strategic implications through the identification, development, and maintenance of marketing competencies and capabilities apparent in transformative firms. The identification and effect of such capabilities' evolution further add to the overall understanding of marketing practice in transformative firms, ultimately assisting not only marketing managers in such pursuits, but also stakeholders such as incumbents and market analysts in responsive and classifying marketing efforts.