The Effect of Relationship Marketing Capability On Frim Performance: A Dynamic Capability Perspective

Based on dynamic capability theory, this paper investigates the relationship between relationship marketing capability and firm performance. In particular, it addresses the question of whether dynamic capability (relationship marketing capability) impacts directly or indirectly through substantive capabilities (innovation capability and corporate social responsiveness) on firm performance. Structural equation modeling and multiple regression are employed to explore the relationships. Empirical findings suggest that relationship marketing capability both directly and indirectly impacts on market performance, while only indirectly impacts on financial and strategic performance. Innovation capability and corporate social responsiveness are important mechanisms for transmitting the benefit of relationship marketing capability into firm performance. Theoretical and practical implications are discussed.