The rise in technological developments and innovations has led to an increase in the number of new emerging industries being formed. Firms within these types of industries operate under constant uncertainty and risk resulting from an ever-changing competitive environment that they are simultaneously co-creating. It is not clear how firms operating under these conditions are able to create a longer-term competitive advantage that consistently allows them to outperform their competitors. This research attempts to fill this gap by exploring how firms in emerging industries develop their dynamic capabilities by using the absorptive, adaptive, and innovative capabilities that underpin it. To complete the study, 15 managers from different firms within the emerging additive manufacturing industry were interviewed. An exploratory qualitative research design was chosen for this study through which semi-structured interviews were used. The main findings of this study suggest that dynamic capabilities of emerging industry firms are multidimensional constructs that consist of the firm’s absorptive, adaptive, and innovative capabilities and that an emergent firm’s path to achieving a longer-term competitive advantage is dependent on how its management is able to use these three microfoundations in concert with one another.