H4 predicted a positive moderating effect of competitive intensity on the relationship between CE and product innovation performance. H5 postulated a positive moderating effect of competitive intensity on the relationship between IT capabilities and CE. H4 was not supported (path coefficient was _.14, p > .05), which suggested that competitive intensity did not significantly moderate the CE–product innovation performance relationship for the firms in our sample. Because the moderating effect was significant (path coefficient was .23 at p _ .01), we concluded that H5 was supported and that competitive intensity positively moderated the IT capabilities–CE relationship. Fig. 3 presents the moderation results3.