The industrial organisation and evolutionary economics traditions in intern
ational business and the resource-based view of the firm in strategic manag
ement provide a rich and related set of perspectives on the question of per
formance in an international environment. This paper draws on these perspec
tives to examine the nature of marketing capabilities across a range of fir
m types in Hungary Poland and Slovenia. A number of key strategic capabilit
ies are examined including market orientation, the time horizon of strategi
c decision making and positioning capability. The study finds that firms wi
th foreign participation have been able to develop a sophisticated level of
marketing capability with a resulting positive impact on financial and mar
ket peformance. Wholly-owned subsidiaries and international joint ventures
emerge as equally effective mechanisms for the transfer of marketing capabi
lity. Conclusions are drawn and implications fi om the research are outline
d.