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The effect of technology management capability on new product development in China’s service-oriented manufacturing firms: a social capital perspective

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  • Weiwei Wu
  • Yexin Liu
  • Tachia Chin

Abstract

Technology management capability (TMC) and new product development (NPD) are important for China’s service-oriented manufacturers to achieve competitive advantage. In this study, TMC is conceptualized as comprising of four sub-level capabilities: searching, selecting, implementation and learning capabilities. Drawing from the theory of social capital, we hypothesize that social capital plays a role in the relationship between TMC and NPD performance. Our findings indicate that NPD performance and social capital are influenced by all the four sub-capabilities of TMC but the effect of each capability of TMC varies. Selecting capability is more significantly and positively related with NPD performance, while learning capability exerts the most significant positive effect on social capital. Moreover, our empirical findings indicate the partial mediating role of social capital in the process of TMC influencing NPD performance. This study makes a particular contribution to the literature by providing a more complete understanding of how social capital plays a role in the relationship between TMC and NPD performance. In terms of managerial implications, our results indicate that improving TMC is essential in enhancing a service-oriented manufacturing firm’s NPD performance. Managers should also pay particular attention to nurturing social capital as a pathway to realize the true value of TMC.

Suggested Citation

  • Weiwei Wu & Yexin Liu & Tachia Chin, 2018. "The effect of technology management capability on new product development in China’s service-oriented manufacturing firms: a social capital perspective," Asia Pacific Business Review, Taylor & Francis Journals, vol. 24(2), pages 212-232, March.
    • Handle: RePEc:taf:apbizr:v:24:y:2018:i:2:p:212-232
    DOI: 10.1080/13602381.2018.1431256
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    1. Tu LYU & Xiangfeng JI, 2020. "A Meta-Analysis on the Impact of Social Capital on Firm Performance in China’s Transition Economy," Sustainability, MDPI, vol. 12(7), pages 1-19, March.

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