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T he dynamic capability view (DCV) has become the leading paradigm in strategic management research since there is great interest in how firms find new ways of resource allocation in order to cope with changes in business systems and to accumulate new competences for generating and sustaining competitive advantages (Teece, Pisano & Shuen, 1997; Teece, 2007). The DCV emphasizes processes and activities that constitute such organizational adaptation and strategic renewal. Dynamic capabilities (DCs) describe a firm's ability and capacity to purposefully integrate, build, and modify its resource base, routines, and ordinary capabilities (Barreto, 2010). DCs are understood to be higher-level capabilities that come into effect to address-and possibly shape-rapidly changing business environments (Teece, 2012; Helfat & Winter, 2011).

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Equipping students with competences which enhance employability is a central aim of higher education that can be reached through work-based learning (WBL) settings. However, the research in higher education on individual and contextual enabling factors of WBL settings is still fragmented. In order to contribute to a systematic design approach, we widen the higher education perspective towards organisational studies, especially the construct of "empowerment". This approach systematically captures the characteristics of enabling working environments, and also emphasises the individual's perception of being empowered. In this paper, we deduce eight influencing factors for competence development, which are, concerning the student's perspective, meaningfulness, selfdetermination, impact, and self-efficacy, and, regarding the university, respectively practical partner perspective, facilitative leadership, sociopolitical support, access to information and resources, and opportunities for mobility and growth. Based on these factors, we infer recommendations for designing WBL settings which enhance employability.

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