The paper discusses the microfoundations of routines and capabilities, emphasizing the importance of understanding their origins at the individual, process, and structural levels. It argues that while much progress has been made in understanding routines and capabilities, their micro-level origins have not been adequately explored. The paper identifies three primary categories of micro-level components: individuals, processes and interactions, and structure and design. These components and their interactions influence routines and capabilities, and understanding them is crucial for explaining organizational and competitive heterogeneity. The paper also highlights the need for further research on the microfoundations of routines and capabilities, particularly in relation to how they are built, maintained, and adapted. It emphasizes the importance of considering individual-level factors, such as cognition, beliefs, and abilities, as well as processes and interactions within organizations. The paper also discusses the role of structure and design in shaping routines and capabilities. Overall, the paper calls for a more comprehensive understanding of the microfoundations of routines and capabilities to advance the field of management research.The paper discusses the microfoundations of routines and capabilities, emphasizing the importance of understanding their origins at the individual, process, and structural levels. It argues that while much progress has been made in understanding routines and capabilities, their micro-level origins have not been adequately explored. The paper identifies three primary categories of micro-level components: individuals, processes and interactions, and structure and design. These components and their interactions influence routines and capabilities, and understanding them is crucial for explaining organizational and competitive heterogeneity. The paper also highlights the need for further research on the microfoundations of routines and capabilities, particularly in relation to how they are built, maintained, and adapted. It emphasizes the importance of considering individual-level factors, such as cognition, beliefs, and abilities, as well as processes and interactions within organizations. The paper also discusses the role of structure and design in shaping routines and capabilities. Overall, the paper calls for a more comprehensive understanding of the microfoundations of routines and capabilities to advance the field of management research.