Studying the Effect of Marketing Capabilities on Performance of Small and Medium Enterprises

In today's dynamic business environment, businesses must have a deep understanding on their performance for staying in competition and sustaining their competitive advantage. The results of various research indicate that many factors are effective on strengthening of SMEs’ performance, meanwhile, many scholars and experts have a special emphasis on the marketing capabilities and regard it as one of the most important determinants of businesses survival. Given the importance of the issue, the main objective of this article which is based on an extensive review of theoretical and empirical literature and library resources, was to study of the concept and dimensions of marketing capabilities and its effect on SMEs’ performance. The results showed that marketing capabilities as a key mechanism in the business play a considerable role in increasing SMEs’ performance through identifying tangible and intangible resources, diagnosis and exploitation of the new opportunities in the market, collect information related to customers’ needs and consequently communicate more effectively with them.