Abstract

The purpose of this paper is to investigate different approaches in measurement of the concept of dynamic capabilities. The paper focuses on a formative measurement model by Wilden and colleagues (2013) and a reflective model by Li and Liu (2014). The models were tested on Ukrainian firms in relation to their performance. A Ukrainian and Russian translation of both measurements is introduced and tested. The proposed measurements were tested by applying a partial least squares algorithm using SmartPLS™ software. The sample contained 113 randomly selected firms from the city of Dnipropetrovs’k and the Dnipropetrovs’k region. The results showed that, first, both measurement approaches produced similar results. There were no statistically significant differences between the results received from these measurements. Second, organizational settings like firm size and firm type did not influence the results. Third, dynamic capabilities proved to be a reliable predictor of a firm’s performance. This study is unique in that it applies and compares two different measuring models (reflective and formative) and provides empirical data on the usefulness of both methods.