Technology Capability, Marketing Capability and Network Capability: Keys to Enhancing Competitiveness and Improving Performance

The aim of this paper is to examine firm's capability and competitiveness, and to explore the role they play in performance. Equipped with resource-base view and network perspective, a theoretical framework is developed to illustrate the relationship between firm's capabilities, involving technology capability, marketing capability and network capability, competitiveness and performance. A LISREL model based on a sample of 215 optoelectronics manufacturing firms in Wuhan East Lake High-Tech Development Zone in RR. China is used to test these interactions. The empirical findings indicate that firm's capabilities affect competitiveness which in turn affects firm performance. Network capability has been shown to have significant influences on technology capability and marketing capability. This implies that firms should consider competitiveness as a harmonizing combination of technology capability, marketing capability and network capability for improving performance.