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Purpose – to analyse the role of artefacts in creativity as a microfoundation for dynamic capabilities. Design/Method/Approach. This conceptual study aims at identifying core aspects of the physical workspace towards power representations and power symbols and delineates impact factors on creativity and its possible implications on the dynamic capabilities of the firm. Findings. We suggest that creativity, believed to be a core aspect for innovation, is a microfoundation and one of the most critical elements of dynamic capabilities to sustain and foster the evolutionary and entrepreneurial fitness of the firm. Practical implications. While it has been shown that hierarchies and power symbols affect the creative performance within a firm, research on the role of physical space as representation of power and its effect on creativity is still limited. Focusing on artefacts might help firms to evoke creativity and, thus, increase innovativeness and dynamic capabilities of a firm. Originality/Value. In fast-paced, globally competitive business environments, sustainable advantage requires unique and difficult-to-replicate dynamic capabilities. Analysis of microfoundations of dynamic capabilities usually goes only one level deeper, e.g. to the concepts of creativity and innovativeness. We made a further step and analyzed artefacts influencing these and other microfoundations. Paper type – conceptual.