This study examines joint new product development within subcontracting networks, analyzing partner selection criteria and the impact of this strategy on organizational performance. An empirical analysis of 83 first-tier subcontractors in the Korean automobile industry revealed that the technological capability of subcontracting firms serves as an important factor in determining participation in new product development, and that greater participation by subcontracting firms in new product development is associated with greater financial performance and innovation. These research findings suggest that "joint new product development in subcontracting networks," which is based on deep commitment and knowledge sharing, is grounded in the exchange of technological capabilities, and that this strategy leads to increased value for both parties in the transaction.