THE IMPACTS OF MARKETING CAPABILITIES ON COMPETITIVE ADVANTAGE AND BUSINESS PERFORMANCE IN THE RETAIL SECTOR IN VIETNAM

Abstract

Over recent years, marketing capabilities have increasingly contributed to firms’ efforts to enhance operational efficiency, deliver superior value, and build competitive strength. As retail channels continue to expand, especially in the context of physical retail stores, marketing-related activities have become more central to retail management practices. This study explores how marketing capabilities influence retailers’ business performance, while also examining the mediating function of competitive advantage. A quantitative research design is adopted to analyze the proposed relationships. The dataset was obtained from 200 managers with hands-on experience in managing retail operations in Vietnam. Structural relationships among the constructs are examined using the PLS-SEM method. The results demonstrate that marketing capabilities, conceptualized through nine dimensions, have significant direct and indirect effects on business performance via competitive advantage. These findings offer managerial insights for improving revenue outcomes and reinforcing competitive positions within retail markets.