This paper explores the concept of dynamic capabilities and their role in the resource-based view (RBV) of the firm. Dynamic capabilities are identified as specific and identifiable processes such as product development, strategic decision-making, and alliance formation. These processes are neither vague nor tautological but have significant commonalities across firms, suggesting that they are more homogeneous, fungible, equifinal, and substitutable than commonly assumed. In moderately dynamic markets, dynamic capabilities resemble traditional routines, being detailed, analytic, and stable with predictable outcomes. In contrast, in high-velocity markets, they are simple, highly experiential, and fragile with unpredictable outcomes. The evolution of dynamic capabilities is guided by well-known learning mechanisms, such as repeated practice, small losses, and crises. The paper argues that traditional RBV misidentifies the locus of long-term competitive advantage in dynamic markets, overemphasizes the strategic logic of leverage, and reaches a boundary condition in high-velocity markets. Overall, the paper contributes to RBV by providing a more realistic, empirically valid, and non-tautological understanding of dynamic capabilities and their role in competitive advantage.This paper explores the concept of dynamic capabilities and their role in the resource-based view (RBV) of the firm. Dynamic capabilities are identified as specific and identifiable processes such as product development, strategic decision-making, and alliance formation. These processes are neither vague nor tautological but have significant commonalities across firms, suggesting that they are more homogeneous, fungible, equifinal, and substitutable than commonly assumed. In moderately dynamic markets, dynamic capabilities resemble traditional routines, being detailed, analytic, and stable with predictable outcomes. In contrast, in high-velocity markets, they are simple, highly experiential, and fragile with unpredictable outcomes. The evolution of dynamic capabilities is guided by well-known learning mechanisms, such as repeated practice, small losses, and crises. The paper argues that traditional RBV misidentifies the locus of long-term competitive advantage in dynamic markets, overemphasizes the strategic logic of leverage, and reaches a boundary condition in high-velocity markets. Overall, the paper contributes to RBV by providing a more realistic, empirically valid, and non-tautological understanding of dynamic capabilities and their role in competitive advantage.