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Purpose – There are different views on how to gain a sustainable competitive advantage (SCA) for firms. This topic has become an important research area in strategic management. The purpose of this paper is to provide an approach for Chinese firms to use as a springboard to identify sources of SCA through marketing innovation. Design/methodology/approach – Based on a cursory review of the generic literature on how to gain SCA, this paper considers innovation as a primary source of a firm's competitive advantage. From a practical viewpoint, marketing innovation is identified as a significant source of SCA, especially for those firms operating in the dynamic and competitive Chinese economic environment. Through an analysis of marketing innovations at the Huawei Technologies Co. Ltd in China, an approach is developed to help managers identify their unique sources of SCA through marketing innovation. Findings – This study reveals marketing innovation results from a considered analysis of the various marketing factors in the environment and the inter-relationships between these factors. Subsequently, new sources of SCA can be identified, based on a firm's previous sources of competitive advantage. In this process, different types of competitive advantage are viewed in a holistic framework, which provides the basis for improving firm performance. Practical implications – The approach developed in this paper offers a basis for managers to identify their firm's unique SCA through marketing innovation. Originality/value – The paper provides insights for academics and professionals in the field and adds to the literature on emerging economies and SCA. [ABSTRACT FROM AUTHOR]