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Purpose

The purpose of this paper is to identify the critical driving drivers of dynamic competitive capability (DCC) from the perspective of dynamic learning mechanisms (DLM), a viewpoint that has been neglected by prior studies. This paper's implicate previous research utilizing the resource‐based view (RBV) as tautological animadversion, and provide a clear theoretical model for developing DCC, especially as it relates to alliance organizations.

Design/methodology/approach

The pertinent literature is reviewed and five case studies were conducted on firms in Taiwan to identify and verify what drivers of DLM influence the evolution of DCC.

Findings

The paper finds that external linkages, previous experience, repeated practice, experience codification, and the integration power of managers play key roles in developing DCC, while ambiguity has a negative impact.

Research limitations/implications

Strategic utilization of these DLM drivers enhances the DCC of alliance organizations. The results provide a reliable basis for developing the DCC of enterprises and improving the success of business activities.

Originality/value

This research closes the gap of previous research on developing DCC via DLM, and defines a clear theoretical model. Thus, this work provides a framework for firms to maintain dynamic, long‐term competitive advantages in varied and fast‐paced environments.

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