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Purpose

The main purpose of this paper is to discuss the strategic repositioning of an academic library using the dynamic capability framework.

Design/methodology/approach

The discussion is based on the re‐organizational process of the Hong Kong University of Science and Technology Library. Three stages are focused, illustrating how the library managed to be dynamically capable, including: sensing the environmental impacts; realigning and reconfiguring its resources; and implementing effective strategies to respond to these challenges.

Findings

The library adopted a multitude of channels and media in sensing environmental challenges. By going through a strategic reorganization, the library has realigned and redeployed its staff resources to better prepare for incoming changes. The reformed organization moved ahead with renewed culture and values, including better internal communication, team spirit, collective learning mechanisms, and effective user communication.

Research limitations/implications

Reorganization is complex and can be highly stressful. Participative culture and effective communication seem to be successful mechanisms.

Practical implications

Cross‐training on work procedures and routines in other units provided organizational learning mechanisms. This collective learning broadened staff's work knowledge, enlightened their understanding of complex processes, fostered good team spirit, and improved overall effectiveness, as more staff become aware of the overall performance implications of their actions.

Originality/value

The paper shares various reorganization concerns and how they were handled. The benefits of a large‐scale cross‐training program are outlined.

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