What are the microfoundations of dynamic capabilities that sustain competitive advantage in
a highly volatile environment, such as a transition economy? We explore the detailed nature
of these dynamic capabilities along with their antecedents by tracing the sequence of their
development based on a longitudinal case study of an organization subject to an external
context of radical transition—the Russian oil company, Yukos. Our rich qualitative data
indicate two distinct types of dynamic capabilities that are pivotal for organizational�…