Second, our results suggest that the value of IT largely depends on its ability to enable and improve CE activities. With enhanced IT-enabled CE, firms can benefit from improved new product development processes and more effective business venturing and self-renewal efforts, which in turn improve product innovation performance. In light of these results, managers should strive to channel IT capabilities toward important entrepreneurial activities. To achieve this objective, IS leaders should interact closely with business executives who oversee and sponsor CE activities to achieve close alignment between IT and their firm’s business strategy. More efforts need to be paid to form a shared deep understanding among both business and IT departments about the promise of IT in supporting corporate entrepreneurial activities, such as the development of new products, new ventures, and new markets or channels. Furthermore, senior management needs to explore novel information technologies and develop IT strategies that can support the firm’s entrepreneurial abilities. IT capabilities, including flexible IT infrastructure, IT integration, IT business alignment and strong IT management skills, should be developed to enhance the collection and sharing of customer information and preferences, communication and collaboration within and across companies’ boundaries, and exploitation of market intelligence to maintain firms’ environmental alertness and agility. With more advanced consumer-oriented technologies and leading web-based systems in firms, it is important to ensure strong IT management skills to facilitate interaction with customers in innovation processes. In addition, firms need strong IT management skills to control security and privacy issues when web-based applications and cloud computing technologies are increasingly implemented in the firms and increase the firms’ exposure to risk while potentially reducing their control over certain IT resources.