From the perspective of knowledge, the paper describes the process of forming Marketing Dynamic Capabilities (MDC) of international firms by means of absorbing, transforming and integrating market knowledge. The paper thus forms a conceptual model and tests it through PLS path modeling based on a sample of 134 Chinese companies. It is found that the breadth and depth of market knowledge has different impacts on MDC. The knowledge integration plays a partial mediating role in the relationship between the breadth of market knowledge and MDC. The depth of market knowledge almost has no direct impact on MDC. Its role on MDC is fully mediated by knowledge integration mechanism. It is also found that formalization significantly moderates the relationship between the breadth of market knowledge and knowledge integration and learning culture has little moderating effect on the paths between the breadth and depth of market knowledge and knowledge integration.