The study looked at how a company's ability to adapt and compete affects its overall performance. They surveyed 309 manufacturing companies in Indonesia and used a method called Structural Equation Model to analyze the data. The results showed that a company's dynamic capabilities positively impact its competitive advantage and performance. Competitive advantage also plays a significant role in improving a company's performance. The study found that competitive advantage enhances the influence of dynamic capabilities on company performance. This research highlights the importance of companies being able to adapt to changes in their environment to succeed in the market.