IntroductionA quarter of a century has passed since publication of a working paper by Teece, Pisano, and Shuen (1997) on theory of dynamic capabilities, which led to a string of subsequent research.1 However, their argument was extremely confusing, with no information on essence of dynamic capabilities. 2 In these circumstances, discussion of this topic based on study by Helfat and Winter (2011) regenerates one idea regarding nature of dynamic capabilities. We first review concept of dynamic capabilities as presented in study by Teece et al. (1997), pioneering work. We note source of confusion. Furthermore, we summarize concept of corporate capability based on study by Helfat and Winter (2011). Further, we highlight meaning of dynamic capabilities from examples given therein, suggesting possibility that dynamic capabilities are similar to of start-up experts that Takahashi (2015) discovered from Penrose (1959).Origin of Dynamic Capabilities TheoryAccording to Thomson Scientific Essential Science Indicators, study by Teece et al. (1997) was most frequently cited in economics and management papers between 1995 and 2005 (Fukuzawa, 2013). This indicates that their study is therefore extremely influential and can be considered to be foundation for development of dynamic capabilities theory. Teece et al. (1997) defined dynamic capabilities as follows.Dynamic capabilities: We define dynamic capabilities as firm's ability to integrate, build, and reconfigure internal and external competences to address rapidly changing environments. Dynamic capabilities thus reflect an organization's ability to achieve new and innovative forms of competitive advantage, given path dependencies and market (Teece et al., 1997, p. 516).However, subsequent studies have shown no unified interpretation regarding dynamic capabilities. This is due to vague explanation provided by Teece et al. (1997). Using above definition of dynamic capabilities, they explained that dynamic capabilities comprise three elements: organizational and managerial processes, positions, and paths. Organizational and managerial (shortened hereinafter to processes) refer to firms' internal routines that indicate manner in which things are processed and denote current customs and learning patterns. The term positions refers to particular assets held at current point in time, such as technologies, intellectual property, complementary assets, a customer base, and external relationships with partners and suppliers. The term refers to strategic alternatives adopted by a firm as well as any increasing returns and attendant path dependencies. Processes comprise both and paths (Teece et al., 1997, p. 518).Moreover, the essence of a firm's competence and dynamic capabilities is......resident in firm's organizational processes (Teece et al., 1997, p. 524). These have three roles: (a) coordination and integration, (b) learning, and (c) reconfiguration and transformation. Coordination and integration are described as static concepts, learning is a dynamic concept, and reconfiguration and transformation are transformational concepts (Teece et al., 1997, p. 518). Thus, source of confusion in dynamic capabilities theory is inclusion of static concepts, such as coordination and integration.Furthermore, with regard to (a) coordination and integration, Teece et al. (1997) cite studies by Clark and Fujimoto (1991) and Womack, Jones, and Roos (1991) when giving examples of routines for coordination, lean production systems, and relationships with strategic alliances and suppliers. With regard to (b) learning, they describe it as a process whereby tasks can be done better and faster through repetition and testing. With regard to (c), reconfiguration and transformation, however, they provide no examples and, without providing any specifics, only say that these are competencies of reconfiguration and accomplish. …