This book discusses theories and frameworks addressing the adaptability and sustainable competitive advantages of firms, including dynamic capabilities. This work develops and examines a concept that makes dynamic capabilities more tangible and provides guidance to managers and researchers on how to develop and maintain sustainable competitiveness. The focus thereby lies on sensing, i.e., the capability of firms to recognize opportunities and threats in their environment, and its effect on a firm’s financial success. The insights from this work will shift managers’ attention from the more static resource-based view to the dynamic capabilities perspective on firms.