Effect of dynamic marketing capabilities on new market development and sales growth: The roles of structural inertia and environmental dynamism

Although prior research has recognized the value of dynamic marketing capabilities in enhancing market performance, limited empirical evidence exists on the contextual conditions under which they are most effective. This study addresses this gap by examining how and when dynamic marketing capabilities contribute to new market development and sales growth. Drawing on dynamic capabilities theory, the research investigates both the direct effects of dynamic marketing capabilities and the moderating roles of structural inertia and environmental dynamism. We employ a multistudy design using two independent samples of B2B firms. Study 1 draws on logistics service providers across East Africa countries, whereas study 2 examines commodity supplier firms operating in Ethiopia. Across both studies, dynamic marketing capabilities positively influence new market development and sales growth. These relationships are contingent on structural inertia and environmental dynamism: firms with lower structural inertia and those operating in more dynamic environments leverage dynamic marketing capabilities more effectively. Overall, the findings clarify the contingent mechanisms through which dynamic marketing capabilities enhance firm marketing performance. • Examine how dynamic marketing capabilities contribute to new market development and sales growth. • Reveals how structural inertia moderates the effect of dynamic marketing capabilities on new market development. • Investigates how environmental dynamism influences the relationship between dynamic marketing capabilities and sales growth. • Explores multiple contexts with diverse data from African countries.