Technology management capability and new product development performance: The mediating role of absorptive capacity

New product development and technology management are both of significance in obtaining firms' competitive advantage. By proposing a conceptual outline for a general model that explains the relationship between technology management capability and new product development performance, we examine the impact of technology management capability on new product development performance, as well as the moderating effects of absorptive capacity on the relationship between technology management capability and new product development performance empirically. We argue that technology management capability can promote new product development performance more greatly with higher levels of absorptive capacity. We test this contention by making an empirical study based on a survey of 151 Chinese enterprises. The results show that technology management capability has a significantly positive impact on new product development performance, and absorptive capacity has a mediating effect on the relationship between technology management capability and new product development performance. These findings extend prior research by establishing the importance of the relationships among technology management capability, absorptive capacity, and new product development performance. And the managerial implications are discussed.