This study examines the evolution of a leading firm's business ecosystem from a dynamic capabilities perspective, emphasizing how businesses adapt to ecosystem changes by managing internal and external resources. It highlights the relationship between business ecosystems and dynamic capabilities. Utilizing qualitative research of the Gogoro case, the study investigates the interplay of the firm's strategy, capabilities, and business ecosystem. Eight propositions are developed, covering various aspects from micro to macro levels, including the firm's role, capabilities, relationships, evolutionary path, ecosystem participation, competitiveness, and policy influence. The study exemplifies how traditional manufacturers can innovate towards sustainability in their business ecosystems, providing valuable contributions to both practical business strategies and academic discussions on ecosystem development and management.