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.