The purpose of this study is to establish the relationship among dynamic capability, marketing capabilities and corporate performance based on dynamic capacity theory and resource-based view. The authors divided dynamic capability into internalization capability and reconfiguration capability and SME’s marketing capabilities were identified as a group of marketing capabilities such as pricing, product development, channel management, brand communication, selling, marketing information management, marketing planning, and marketing implementation. According to the analysis of 322 small and medium-sized companies located in city of Daegu and Gyoungbuk province, both internalization and reconfiguration capability had a positive influence on a bundle of marketing capabilities, and marketing capabilities have a positive effect on corporate performance. In addition, the authors presented an alternative model which tested the direct effect of two dynamic capabilities on each of individual marketing capabilities as well as each of marketing capabilities on corporate performance. Findings showed that internalization capability had a positive effect on all of marketing capabilities, but reconfiguration capability had not significant effect on both market research and brand communication capability. The relationship between individual marketing capabilities and corporate performance was found to be statistically significant only in terms of marketing planning, channel management, and brand communication capability. Finally, the researchers described the academic and policy implications of this study and suggested future research directions.