The article explores how knowledge management and learning are essential factors impacting the economic organization. The dynamic capabilities framework explains how firms’ distinctive experience-based and knowledge-based assets drive their vertical and lateral integration, their heterogeneity, and, indeed, their very existence. It emphasizes the importance of organizational learning as the key to a firm’s capabilities. The article may review the firm resources’ nature and then outline the dynamic capabilities framework. It may also explain that dynamic capabilities can usefully be thought of in three clusters: sensing opportunities, seizing them to capture value, and transforming the organization to adapt to the requirements of new business models and the competitive environment.