The development and impact of marketing capabilities in Central Europe

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.