Abstract
Given their small size and young age, entrepreneurial firms are resource deprived. However, to successfully compete in dynamic environments, these firms are still required to build their dynamic capabilities. Using the ever-changing Korean retail fashion industry, we suggest that entrepreneurial firms deprived of formal marketing departments can learn from their main external repositories of market and product knowledge and develop their strategic marketing (dynamic) capabilities as routines, which, in turn, improve the entrepreneurial firms’ performance. Moreover, following the microfoundations argument of dynamic capabilities, we argue that these strategic marketing capabilities in the form of routines can be further enhanced by the entrepreneurial firm’s human resource flexibility. Our data reveals support for our arguments.
