International Journal of Academic Research in Economics and Management Sciences 2017, Vol. 6, No. 1 ISSN: 2226-3624 146 www.hrmars.com The Relationship between Strategic Capabilities and Competitive Performance: The Moderating Role of Internal Cooperation Mehmet SEYHAN Department of Business Administration, Gaziantep University, Gaziantep/Turkey Email: mseyhan@gantep.edu.tr Sibel AYAS Department of Business Administration, Gaziantep University, Gaziantep/Turkey Email: sibelayas@gantep.edu.tr Ümit SÖNMEZ Email: usonmez@yahoo.com Özlem YAŞAR UĞURLU Department of Business Administration, Gaziantep University, Gaziantep/Turkey Email: yasar@gantep.edu.tr DOI: 10.6007/IJAREMS/v6-i1/2603 URL: http://dx.doi.org/10.6007/IJAREMS/v6-i1/2603 Abstract This study aims to explore the relationship between strategic capabilities and competitive performance and the moderating effect of internal cooperation on this relationship for the machine made carpet manufacturers operating in Turkey. As a result of analyses of 203 questionnaires collected from top and mid-level managers of machine-made carpet manufacturers which are operating in Turkey, it has been observed that marketing capabilities, market-linking capabilities, information technology capabilities and management related capabilities as dimensions of strategic capabilities have a positive effect on competitive performance. Besides, internal cooperation has moderate only the relationship between management related capabilities and competitive performance. Theoretical and practical implications are discussed. Keywords: Strategic Capabilities, Internal Cooperation, Competitive Performance 1. Introduction Organizations mostly carry out their activities in a highly competitive environment. The intense competition forces organizations to create strategies which differentiate them from