The importance of marketing capabilities and innovation is widely acknowledged in strategic marketing literature. Yet, extant research has examined the importance of these strategic factors independently in providing firm's economic benefits. In this dissertation, I propose three standalone yet interwoven essays, in answering questions regarding the interplay of these two strategic factors and their sources. Essay one proposes the integration of both marketing capabilities and innovation in exploring how marketing capabilities enhance firm's ability to profit from innovation. Essays two and three examine the sources and consequences of marketing and innovative capabilities. The second essay proposes CEO's personality trait of self-monitoring as a key driver of a firm's innovative capabilities. Essay three investigates how CEO's managerial ties aid in enhancing the impact of marketing and innovation capabilities on profit growth over time. Overall, through these three essays I attempt to demonstrate the importance of marketing and innovation capabilities and provide a fresh perspective in examining the sources and outcomes of these capabilities.