Abstract：Based on dynamic capability reconfiguration perspective, this study took Baidu as the case to explore how capability reconfiguration promoted Baidu to strategic transformation. The results showed that the organizational cognitive stagnation and the simply copy of ability caused capability rigidity which hindered the strategic transformation process. Capability reconfiguration could be divided into two kinds of mechanisms: capability extension and capability reconstruction. The former focused on the industry mature technology and the short-term market share from organizational cognition, and employed the exploitation learning of existing technology or market to extend the organizational capabilities. The latter focused on industry cutting-edge technology and long-term market efficiency from organizational cognition, and employed the explorative learning of new technologies and new markets to explore organizational capabilities. The integration of organizational cognitive and separation of organizational action can promote two mechanisms to coordinate and complemente each other, and promote the success of the enterprise strategic transformation further.