As shown in Table 3, the interaction term of IT and strategic direction is positively associated with gross margin. The positive relationship is significant for the full sample. The results are the same for all three measures of strategic direction (STD1, STD2, and STD3). The estimates are consistent with H1 that there is a positive relationship between gross margin and the interaction term of IT and strategic direction. The null hypothesis of zero effect can be rejected for the full sample at the .05, .01, and .01 confidence levels when STD1, STD2, and STD3 are employed as measures of strategic direction in the interaction term, respectively.