How can companies boost legitimacy in international markets? A dynamic marketing capabilities approach.

Abstract

Purpose – Foreign markets possess different characteristics to domestic ones; this means that dynamic marketing capabilities (DMCs) should be adjusted. This paper aims to understand how these DMCs enable firms to achieve greater legitimacy in international markets. Design/methodology/approach – This research uses a qualitative approach based on in-depth interviews in collaboration with an association of exporting firms. Findings – Findings suggest five areas of DMCs to improve organizational legitimacy overseas: flexibility, relationship management, local market sensitivity, anticipation and exemplariness. Those capabilities should be combined and will play a different role depending on the implementation phase of the external company. Resource allocation and capability development should follow an integrative approach emphasizing proximity, adaptability, alliances, engagement and credibility to reach differentiation in foreign markets. Originality/value – The originality is mainly focused on the cohabitation and strong synergies between DMCs and legitimacy. This aspect is particularly relevant because legitimized companies have higher levels of survival, which is fundamental in the international venture.