Abstract
How a firm creates and sustains competitive advantage is critical to organization and management studies. While some emphasize the significance of industrial structure and core competencies, there is an increasingly attention to the changing environment in which start-up and established firms often fail to compete and survive. In this paper based on the dynamic capabilities perspective, we conduct a case study to explore how BenQ, a Taiwan-based IT company, developed and regenerates its resources and capability to adapt to the changing technological environment. We conclude by discussing implications for theory, practice and future research.