Moreover, this paper theorizes a contingent relationship between IT capabilities and CE activities. Specifically, the study finds that competitive intensity augments the positive influence of IT capabilities on CE. This result suggests that IT-enabled CE activities are contingent upon the competitive conditions of the market. In other words, while effective CE activities generally depend on strong IT capabilities, such dependence becomes more acute when the firm operates under conditions of heightened competition. In such an environment, access to relevant and timely information, the ability to share information across the organization and with business partners, the capacity to communicate in real time and over multiple channels, and the ability to transform and integrate disparate business units that are needed to conceive and execute innovative ideas are even more important. Surprisingly, the proposed moderating role of competitive intensity on the CE–product innovation performance relationship is not supported by the data of this study. This outcome may stem from the fact that in competition-intensive environments, frequent changes of internal business practices are required, which tend to limit the return on CE activities [30]. In particular, an intensively competitive environment can spur entrepreneurial activity but also reduce the likelihood that firms realize benefits from entrepreneurship and innovation. The inability to generate novel ideas and translate them into financial success might counterbalance the positive increase in entrepreneurial activity, thus making the overall moderating effect nonsignificant.