This study examines a promising new dynamic capability known as organizational capacity for change (OCC). It is anticipated that organizations will find such a capability valuable if they find it necessary to adapt to rapidly changing environments. Recognizing that scale construction is one of the most challenging problems in the study of organizations, we follow the framework established by Hinkin (1998) in order to develop a scale that satisfies the standards of organization science. First, we provide detail on the generation of items and the collection and analysis of an extensive multi-industry database of over 3,500 respondents within 150 organizational units from 2000-05. Next, we explore the nomological network of variables surrounding OCC for 51 organizational units in a single industry study. The end result is a reliable and valid measure of a promising new construct in the literature for measuring and tracking organizational capacity for change.
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Judge et al. (2006) studied this question.