How technological capability influences business performance : An integrated framework based on the contingency approach

Purpose – This study seeks to address three research questions: how technology capability impact business performance? Does the linkage between technology capability and business performance depend on specific contexts? Why do some high‐tech firms of strong technological capability fail? Design/methodology/approach – The paper draws on various theoretical perspectives to develop hypotheses that propose a direct relationship between technological capability and business performance (both new product development and overall business performance), the mediating role of customer value, the possible moderating effects of business environment and other important contingent factors such as learning orientation. A conceptual framework is devised and tested that examines these relationships in general and in various contexts, which is believed more important and useful for firms to manage their technological capability more effectively. Findings – Findings from high‐tech firms in China confirm the validity of the framework and afford various insights on the role of various contingent factors in the proposed relationships. Originality/value – The paper provides a framework that examines companies' technological capability relationships.