BACKGROUND: Microalgae firms face challenges of being in an emergent industry, such as adoption inertia, slow acceptance among potential customers, and opposition among incumbents in existing, shared markets. OBJECTIVE: The aim of this study is to identify strategies that can enhance firm performance in the microalgae industry in Europe, North-America, Israel, Australia, and New Zealand. METHOD: This study tested quantitatively whether applying dynamic capabilities, forming strategic alliances, and building brand can meet these challenges and thus enhance firm performance. RESULTS: 85 firms were received a survey, out of which 43,5% responded. 3 types of regression analyses were performed for the measures of the three hypothesized strategies. These analyses showed support for dynamic capabilities and brand building as performance enhancing strategies, and partial support for strategic alliances. CONCLUSION: Applying dynamic capabilities and building brand enhances firm performance in the microalgae industry. This is also assumed to be true for strategic alliances, but in this study it was only found partial support for enhancement of firm performance through forming strategic alliances.