The 2004 Winter AMA Educators' Conference recognized the importance of George Day's 1994 article titled "The Capabilities of Market Driven Organizations" published in the Journal of Marketing (vol. 58, p. 37-52). Professor Day's article received one of the AMA's highest honors at the 2004 Winter AMA Educators' Conference, the Sheth Foundation/Journal of Marketing Award, noting its long term influence on the field of marketing. Using this as a foundation and common interest area, our Round Table explored the issue of global capabilities and culture's influence on such capabilities. Numerous research issues arose during the session.  All participants in the sessions are commended for the ideas they brought to the session and the knowledge they produced during the discussion.  The following issues we found particularly of note. 

1. Defining and measuring the scope of capabilities. Capabilities are defined as complex bundles of skills and knowledge, exercised through organizational processes, that enable firms to coordinate their activities, to make use of their assets, and to continuously learn and improve (Day 1994). Capabilities research derives in large part from the resource based view of the firm. However, while defining capabilities as unique resources, research on capabilities often neglects confirming that the measured capability actually is a resource under the resource based view. Specifically, little, if any research measures whether a capability is rare, valuable, perfectly immitable and whether or not there is a strategically equivalent substitute for it. As such, research exploring capabilities often lacks foundational rigor. Second, often times research in this area can appear tautological. For example, a specific capability is identified by a researcher based upon its ability to enhance performance. Then, the researcher notes that the capability allows the firm to enhance performance. Clearly certain capabilities allow firms to establish competitive positions and enhance performance, however, greater care must be taken to assure that capabilities are adequately defined and measured to avoid pitfalls of tautology and assumption.

2. Global Capabilities. Given the definition of capabilities offered by Day (1994), we wonder whether global capabilities different than capabilities. Much as the debate between differentiating marketing and global marketing, clearly defined edges are needed. Are global capabilities simply the creation of difficult-to-imitate combinations of resources, including effective coordination of inter-organizational relationships, on a global basis that can provide a firm a competitive advantage. If so, then global capabilities would appear to have two primary components: 1) developing systematic global coherence while recognizing the unique features of each country's environment to facilitate customization of individual country strategies and; 2) adaptation, integration and reconfiguring of internal and external assets to match opportunities in the global marketplace. As such, global capabilities can be argued to be distinct from capabilities given their interaction with multiple country environments (much as the differentiation between marketing and global marketing). Clearly, further theory development is needed to set for the boundary parameters on these constructs for a strong research agenda to be put develop.

3. Culture's Role. Individuals operate based upon their cultural orientation when engaging in business practices (e.g., Brett and Okumura, 1998; Tse, Lee, Vertinsky and Wehrung, 1988). Culture is the homogeneity of characteristics that separates one human group from another and provides a society's characteristic profile with respect to norms and values that affords understanding of how societies manage relations (Triandis, 1987; Hofstede, 1991, 2001; Trompenaars and Hampden-Turner, 1998; Bhawuk, 2001). It could be argued that capabilities, and capability possibilities, are to some extent founded within the socialization process of individuals within a specific cultural group. This socialization process in turn provides individuals with schemas, or templates, for interpreting situations and determining behavior. As such, one might argue that certain firm capabilities may be more associated with certain cultures than others. Further, as a firm operates in multiple markets, one could argue that the ability to develop and implement capabilities may be hindered by cultural boundedness. Greater research efforts exploring the relationships between culture and capabilities could substantially enhance our understanding of culture's role in firm performance and multinational effectiveness.

4. Universality of Global Capabilities.  Researchers contend that managers can standardize or adapt programs and/or processes. In general, program refers to the elements of the marketing mix, whereas process refers to the outline of activities that occur prior to, and during the development and implementation of the marketing program. While a significant amount of program related research, i.e., specific tactics used, has been conducted (e.g., Baalbaki and Malhotra 1993, 1995; Cavusgil and Zou 1994; Jain 1989; Kotabe and Omura 1989; Samiee and Roth 1992; Szymanski et al 1993), little research has examined process related issues, i.e., the tasks that aid in program development and implementation (Griffith et al 2000; Shoham 1995; Walters 1986). Capabilities are processes and as such lend themselves to discovery via process standardization and adaptation investigation. Building on the other issues put forth one might argue that certain capabilities are more univerasally applicable across markets and therefore can allow for the benefit gains from process standardization. 

In summary, one clear take-away from the Round Table discussion was the richness and importance of the topic addressed – global capabilities. This area provides numerous opportunities for global marketing researchers to contribute to improved theoretical development and practical application. Conceptual and theoretical development matched with empirical research on this topic will provide for a better understanding of how global capabilities are developed and implemented and how they can enhance firm performance.