The objective of this paper is to explore the notion of dynamic capabilities as a dominant source of competitive advantage, focusing on R&D capability and technological capability and exploitation of knowledge about them. Building on qualitative data from six representative IT firms, the results indicate that firms more strongly committed to deploying R&D capability and technological capability as a dynamic capability hold the potential for a sustained competitive advantage. The paper points out how important it is to understand that simply possessing and developing knowledge as a resource but without exploiting and adapting it in line with dynamic capabilities will not be enough to sustain a competitive advantage. To bolster our study, we provide insights into good practices that underpin R&D capability and technological capability as well as bad practices that represent rigidity in their deployment. Our paper highlights the importance of the dynamic capabilities perspective as a field of study in today’s dynamic environment, and exposes the importance of ensuring a continuous commitment to the sense, seize and reconfigure capabilities as part of dynamic capabilities. From a practitioner’s point of view, we believe the results may encourage managers to contemplate and understand how this can be useful in practice.