Organizations can weaken their competitive positions by having either an excess or an insufficiency of dynamic capabilities, and/or by failing to assemble a resource configuration that includes basic resources as well as the key resources that give competitive advantage. Resources must also be appropriate at both the infrastructure and functional levels. These propositions are based upon an elaboration of the resource based view of the firm that provides refined characterizations of the organizational environment and the three categories of resources identified by Barney, and gives a clearer understanding of the nature of position and the kind of resource infrastructure needed to sustain dynamic capabilities. The argument that the dynamic capabilities model is a nee-contingency approach is addressed.