Based on the competence‐based perspective and contingency perspective, this study attempts to examine the relationships among first‐mover strategy, a firm's core capacity, resource allocation, and new product performance. Our findings indicate that (1) firms achieve a better new product performance when adopting first‐mover strategy and having an excellent core capacity, and (2) firms achieve a better new product performance if their core capacity (technical and managerial) fits the resource allocation they implement. Managerial implications and future research directions are discussed.