This research paper examines the role of adaptive capability and absorptive capability in the development of digital marketing capability that, in turn, influences the firm performance. The results reveal that both adaptive and absorptive capabilities have a positive influence on digital marketing capability that positively contributes to customer relationship, new product and financial performance of the firm. The adoption of new digital technologies such as smart products, the Internet of Things (IoT), Artificial Intelligence, and machine learning will change markets, competitive landscapes, business models and consumer behaviors, new thinking about marketing capabilities becoming critical to succeed in today complex environment (Day, 2011; Kannan & Li, 2017). To remain competitive and survive, organizations have to develop new marketing capabilities to harness the potential of these technologies in supporting marketing functions and processes (Trainor, Rapp, Beitelspacher & Schillewaert, 2011). Despite the rapid diffusion of digital technologies in business practice, only few previous researches was focused on theoretical and empirical aspects of marketing capabilities needed in digital-empowered environment. To fill this knowledge gap, we develop the digital marketing capability construct, and explore its antecedents and consequences on performance.

• Florin Foltean(West University of Timisoara, Romania)