The main goal of this thesis was to theoretically and empirically analyze hypotheses about the connection and interdependence of dynamic capabilities, enterprise innovation and the dynamism of the industry in which the company operates. At a time when dynamism and volatility are one of the main features of the global market, companies need to find a way to stay competitive and gain a long-term competitive advantage. Dynamic capabilities represent the skills and processes by which companies most effectively change and adapt their knowledge and resources in order to adapt to the business environment, take advantage of potential opportunities and achieve a competitive advantage. Furthermore, according to today's market conditions, which are characterized by a faster change in the wishes and needs of consumers, but also by the great availability and standardization of the offer, companies are required to be innovative, and innovations are considered the basis of inevitable changes. Enterprise innovation implies a process whose purpose is to use current conditions and opportunities in the environment in order to create new value and thus gain a competitive advantage. Empirical research was conducted on a sample of 58 large and medium-sized Croatian companies operating in various industries. Based on the statistical analysis of the collected data, a positive connection between dynamic capabilities and competitive advantages, as well as company innovation and competitive advantages, has been proven. Therefore, it can be concluded that the dynamic capabilities and innovativeness of the company, depending on the level of market dynamism, have a positive effect on achieving a competitive advantage and as such become prerequisites for survival in the modern market. The purpose and goal of this paper have been fulfilled, and considering the significance of the analyzed variables, this paper can serve as an introductory phase or a basis for some future research on the dynamic capabilities and innovativeness of companies.