Equipped with the resource-based view and network perspective, a theoretical model is built on the basis of three constructs: firm's capabilities, involving technology capability, marketing capability and network capability; competitiveness; and performance. Drawing upon a sample of 215 optoelectronic firms in Wuhan East Lake High-Tech Development Zone in PR China, results of a LISREL analysis indicate that firm's capabilities affect competitiveness which in turn affects performance. Network capability has been shown to have significant influences on technology capability and marketing capability. In addition, the relationship between technology capability and marketing capability is positive and appears to be reinforced by each other.