The relationship between market capabilities of firms and its competitive advantage is significant
h 1a: Product development as marketing capability positively affects firm competitive advantage

h 1b: Channel Management as marketing capability positively affects firm competitive advantage
h 1c : Customer relationship management as marketing capability positively affects firm competitive advantage

The core purpose of marketing which is to preserve and protect customer value implies the ability to continuously augment the value (attributes, benefits, attitudes, and network effects) and to foster and renew the market based assets and capabilities. (Srivastava et.al 2001). The ability of marketing capabilities to generate advantage is uncontested in case of stable environments its capacity to however to sustain the advantage is challenged by increasing complexity and uncertainty of market environment. In dynamic markets, here is a widening gap between accelerating complexity of markets and the ability of firms to comprehend and manage with this gap and this makes the firms competitive advantage vulnerable(Day, 2011) There is limited utility of marketing capabilities protect and generate competitive advantage against market evolution and non- linear market disruptions. To address this limitation the research proposes the second layer of variable in the form of market orientation. Market orientation along with marketing capabilities forms a distinctive bundled capability called dynamic marketing capability which provides growth momentum to the firm by renewing its advantage in the light of changing environments.

The construct of marketing orientation has been extensively researched in marketing and strategy literatures (Kohli and Jaworski 1990). Strategic management (e.g., Dobni and Luffman, 2003; Hult and Ketchen, 2001) and marketing ( Jaworski and Kohli, 1993) researchers posit that market orientation (MO) gives a source of competitive advantage to the firms. It is a well-grounded central concept of marketing discipline (Gebhardt et al. 2006; Kotler 2000). As far as this research is concerned; the concept of market orientation of firms is essentially the extent to which a firm is involved in the generation, dissemination, and response to market intelligence in relation to ongoing and prospective customer needs, competitor strategies and actions, channel management etc. In short it deals with the broad spectrum of broader business landscape (e.g., Kohli and Jaworski, 1990, Hult and Ketchen, 2001; Jaworski and Kohli, 1993). It provides the scope for the drivers of competitive advantage to act. Firms with superior MO achieve superior business