In this paper, the effect of system linearity and kinetic events on heat capacity measurement by temperature modulated differential scanning calorimetry (TMDSC) is analyzed based on the thermal conduction differential equations that have been linearized assuming small kinetic perturbations. Numerical simulation of a first order reaction is used to demonstrate the importance of system linearity and the selection of experimental parameters. Experimental results of specific heat capacity determinations during crystallization of an amorphous alloy were presented.