S Liu, Ranjit Voola, Susan Freeman, Margaret Jekanyika Matanda
This study explores the role of dynamic marketing capabilities (DMCs) and cross-functional dynamic capabilities (cross-functional DCs) in addressing climate change in Chinese SMEs. However, a comprehensive view of the specific capabilities required to support climate action remains underdeveloped. Prior literature has predominantly examined these capabilities separately, offering limited insight into how these capability sets jointly support climate action, particularly in emerging economies (EEs). Qualitative insights drawn primarily from senior managers reveal three DMCs (market sensing, marketing communication, and collaborative stakeholder engagement), and four cross-functional DCs (innovation, strategic leadership, environmental management, and organisational learning) as critical for the development and implementation of effective climate action strategies. The findings show that DMCs connect firms to external market, stakeholder and policy signals, while cross-functional DCs enable internal coordination, adaptation, and implementation. Rather than operating in isolation, these capability sets operate in combination to support coherent and effective climate action in SMEs operating in EEs.