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Abstract
Based upon the dynamic perspective of RBV, we incorporated SHRM and organizational change literature to examine the processes of developing a firm's dynamic strategic capabilities through strategic human capital leveraging coupled with human-capital-oriented restructuring to cope with rapidly changing environments. Findings from 154 firms show that a total mediation model identifies that strategic human capital leveraging not only catches the benefits of complementary human capital process (deployment and inimitability) fitted to a firm's strategic need but also needs the co-specialized human-capital-oriented restructuring to facilitate a firm's flexible capabilities. Maintaining dynamic strategic capabilities requires firms to leverage their human capital for not only achieving maximum productivity but also contributing to core competence so that they will become distinctive and constantly be reconfigured and adapted in the process of organizational restructuring in correspondence with the dynamic environment.