The purpose of this paper is to indicate that firms which renew their resource base in line with the dynamic capabilities view can generate and sustain a competitive advantage and thus the related firm performance. In order to investigate the relationships involved, in-depth interviews were conducted in six representative IT firms. The results suggest that firms with a stronger commitment to deploying dynamic capabilities are more successful and hold the potential for a sustained competitive advantage. We also found that innovation capability, managerial capability and human resource capability are the most relevant capabilities that allow firms to successfully adapt to a changing environment and the highly demanding IT market.