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Using social capital theory, this study aims to investigate internal social capital (ISC) and external social capital (ESC) as determinants of knowledge sharing intention (KSI) and new product development (NPD) in high-end restaurants.

A theoretical model is developed and tested using data collected from 523 respondents (owners/proprietors, partners and managers) from high-end restaurants in Karnataka, India. Partial least square structural equation modeling is used to analyze the data.

The results suggest that ISC has a significant and positive influence on ESC. This highlights the important role of ISC in building ESC. While ISC has a positive relationship with KSI, ESC has no influence on KSI. KSI has a positive effect on NPD.

Restaurant managers and owners should invest time and resources in building ISC by nurturing relationships with employees and partners. Encouraging and rewarding collaborative behaviors internally will facilitate the development of external relationships. Results also suggest the existence of an optimum level of knowledge sharing with external partners in restaurants.

To the best of the authors’ knowledge, this is the first study to examine the relationship between ISC and ESC, and test the effects of both KSI and NPD in high-end restaurants.