We propose that while EMFs’ international diversification promotes new product performance, technological capability actually mediates the relationship between international diversification and new product performance. We further argue that focusing on more developed markets strengthens the positive effect of EMFs’ international diversification on their technological capability accumulated over the process of internationalization, whereas it weakens the impact of EMFs’ technological capability on their new product performance because EMFs have to compete with local and global firms in the more developed target countries. Analysis on Chinese manufacturers’ international efforts provides support for these hypotheses.

• Jie Wu(University of Macau, China)
• Zhenzhong Ma(University of Winsor, Canada)