The firms with high market orientation firms provides a good base for its capabilities to instantly adapt to customers’ noticeable and latent needs, and has propensity to deliver superior product/market success, profitability, market share and competitive advantage. (Baker and Sinkula, 2005). The capacity of firm to create generate, maintain as well as create new sources of competitive advantage is fostered by the interaction effect of market orientation and marketing capabilities. The interaction of the MO and MC concepts has given rise to the concept of Dynamic marketing capabilities (Barrales‐Molina et.al, 2014) .This combination creates unique asset/resource recombination which is not imitable by the competitors. If these are rare, valuable, inimitable, and non-substitutable, it results into sustainable competitive advantage over time (Barney, 1991) as firms “grow isolating mechanisms or resources position barriers that secure economic rent” (Lavie, 2006, p. 640). DMC’s are robust and can be used in different ways to speed the firm\’s adaption to environmental change and hence provide momemtun to organizations. The DMS’s are bestowed with the characteristic of ‘asset interconnectedness’ (Teece et al., 1997). This produces causal ambiguity that makes it generally difficult for competitors to extricate the source of a firm’s observed performance advantage (Reed and Defillipi, 1990).Thus the second layer of market orientation and its interaction with the first layer of marketing capabilities products the second order construct of dynamic marketing capabilities and provides momentum to the firm by sustaining the advantage in dynamic markets.

Based on the above the following hypotheses have been presented:

H4: The interaction effect of Market orientation and Market Capabilities (MO*MC) has a positive impact on firm competitive advantage
H5: The relationship of Interaction effect of Market Orientation and Marketing Capabilities
(MO*MC) has stronger impact on competitive advantage than the individual effect of the constructs.

Firms like 3M, Google are intensely entrepreneurial and hypercompetitive where the quest for new sources of competitive advantage moves at a super speed. Hence the predictive power of dynamic marketing capabilities is rendered limited and short lived as there is continuous innovation or instance of disruptive innovation in terms of products, process and business models. High performing established firms need to tap new sources of advantage from exploring uncharted turfs of the external environment and quickly deliver new products/ services/ business models by converting the novel opportunities to distinctive competencies. Entrepreneurial Orientation and its dimensions of proactiv