Emerging new technologies, new products, new markets and new management concepts are increasingly used by firms to achieve competitive advantage (Kapoor and Adner 2012; Lourdes Sosa 2013; Zaefarian et al. 2017). China’s manufacturing industry is undergoing radical transformations due to mega-competition taking place on a global scale. The industry is gradually integrated with services, leading to the growth and importance of service-oriented manufacturing (Gao et al. 2011; Brax and Visintin 2017). In order to meet customers’ special requirements, there is a strong need for new product development (NPD), as product innovation leads to market differentiation that could consequently create a variety of novel opportunities for manufacturers in the increasingly competitive markets (Jeong, Pae, and Zhou 2006; Matsui et al. 2007; Cao, Jiang, and Wang 2016). Nevertheless, the majority of Chinese manufacturing firms remain relatively weak in NPD performance (Guan et al. 2006; Ma et al. 2015; Chin and Liu 2016, 2015). This essentially is the biggest challenge for China’s service-oriented manufacturing firms to pursue transformation and upgrading in the course of sustaining their competitiveness (DCRIC 2011). Previous research has investigated the barriers to improve NPD performance of Chinese firms. Li (2013) argues that managerial issues are significant matters that need to be considered in the NPD performance of Chinese manufacturers. Kotabe, Jiang, and Murray (2011) suggest that managerial ability in integrating and transforming knowledge is paramount in enhancing product innovation performance. Based on a survey of senior executives from 150 large-and medium-sized Chinese manufacturers, DCRIC (2011) claims that 47% of the challenges these firms faced are related to their internal management. Chinese firms cannot rely on traditional production factors (such as low-cost labour) to compete, but instead must enhance the efficiency and effectiveness of managing technologies (DCRIC 2011). Many Chinese firms have had poor innovation and competitive performance because of the lack of management skills and their failure to cultivate technology management capability (TMC). Despite TMC being expected to influence NPD, there have been limited studies investigating the impact of TMC on NPD performance. Adopting the knowledge-based view, the process of TMC in influencing NPD performance is closely aligned with knowledge acquisition, assimilation, transformation and exploitation (Cetindamar, Phaal, and Probert 2009). Guan et al. (2006) show that Chinese firms are used to spend a large portion of their innovation costs on the acquisition of technological equipment from world-renowned multinational enterprises (MNEs), but had largely overlooked the importance of building interpersonal trust and cooperation with these MNEs (Redding 2005; Rowley and Harry 2010; Rowley and Redding 2014). Such cooperation and trusting relationships are the foundations of social capital (Kim, Im, and Slater 2013; Kwon and Adler 2014; Suseno and Pinnington 2018), which could facilitate the acquisition and utilization of technological knowledge. Indeed, firms do not face difficulties in the transfer of hardware blueprints, product specifications and pricing lists, but they find it more challenging to transfer the intangible ‘know-how’.