This study investigates the barriers that hinder the non-leading Brazilian higher education institutions (HEIs) in repositioning within the digital landscape based on dynamic capabilities. In-depth semi-structured interviews with top managers at six non-leading HEIs show that the main barriers include uncertainty about the traditional HEI future in the digital scenario, lack of strategic tools to reposition the HEIs, lack of knowledge about the cost-benefit of an institution’s digitization, lack of knowledge on how to implement changes, and lack of information on if an HEI should (or not) meet all the new stakeholder needs. These barriers prevent HEIs from successfully adapting to the digital era. Methodologies and tools are required to guide strategic decisions, perform digitization’s cost-benefit analysis, and implement changes that meet stakeholders’ evolving demands. By overcoming these barriers, HEIs can effectively implement dynamic capabilities, transforming the challenges of the digital age into opportunities for growth and innovation.