The purpose of this paper is to provide a validated measurement instrument for digital dynamic capabilities (DDC), which has remained difficult to assess due to the absence of reliable measurement tools, thereby offering firms a means to evaluate their strategic readiness for digital transformation (DT).
Building on insights from prior qualitative research and expert review, an initial pool of 27 items was generated. These items were tested through two large-scale surveys involving 625 managers in Spain and Colombia. Exploratory and confirmatory factor analyses were conducted to refine the scale, and structural equation modelling (SEM) was used to examine the relationships among the dimensions and their influence on firm performance.
An 18-item scale emerged, capturing three dimensions: digital sensing, digital seizing and digital transforming. The instrument shows strong reliability and validity. The SEM results confirm that these capabilities are mutually reinforcing and significantly contribute to firm performance.
Managers can use the resulting instrument to assess their firms’ strengths and weaknesses in digital sensing, seizing and transforming; this allows organizations to identify capability gaps, prioritize development efforts and support more effective DT initiatives.
By improving the understanding of DDC, this study supports the development of digitally resilient organizations, enhancing competitiveness and enabling firms to respond effectively to technological and market changes.
To the best of the authors’ knowledge, this research offers the first empirically validated instrument for measuring DDC. By specifying and operationalizing the three underlying dimensions, this study fills an important gap in DT research and provides a foundation for future empirical investigation.
