Despite its immense popularity, the dynamic capabilities framework faces fierce criticism because of the ambiguous and contradictory interpretations of dynamic capabilities. Especially challenging are the aspects related to the nature of dynamic capabilities and the issue of agency. In an attempt to avoid circular and overlapping definitions, I explicate dynamic capabilities as the regular actions of creating, extending, and modifying an organizational resource base. This implies that the individual’s intention to change the status quo in the organization and the individual’s high level of influence in the organization are necessary and sufficient conditions for dynamic capabilities. This approach overcomes challenges associated with current interpretations of dynamic capabilities, necessarily focusing on the actions and interactions of individuals in organizations. Following the micro-foundations movement, I present a multilevel approach for studying the individual-level causes and the firm-level effects of dynamic capabilities.