CAN MARKETING CAPABILITIES LEAD TO THE COMPETITIVE ADVANTAGE OF THE FIRM?

The research has encompassed the analysis of sources of competitive advantage in the sample of Slovenian companies. The paper presents evidence that the development of higher levels of five vital marketing capabilities (in the areas of product differentiation, market research, new product development, generating new business ideas and firm's ability to align the operations to rapid market changes) can lead to competitive advantage. Marketing capabilities like generating new business ideas and new product development can enhance the firm’s sustained competitive advantage and thus should also be confirmed in the paper. The paper closes with the implications of the findings and highlights promising future research avenues.