This study takes a step in that direction by empirically examining the management of computer aided (CAD) technology and outcomes of the product design process within manufacturing firms. The influence of these management levers upon the CAD system performance is analyzed through the use of moderated regression analysis conducted on a cross-sectional data of 143 firms representing the vehicular industry in the USA. Our findings indicate that CAD functionally and sophistication are positively related to product design quality, flexibility, and overall performance. The impact of management levers on this relationship is a mixed one. Decentralization has no impact on the CAD technology-performance relationship, formalization has some positive effects, and the use of teams is helpful only in moderating the influence of sophistication on overall performance. Equity of incentives enhances design quality, while training is very important in improving performance across teh board. In general, sophisticated "state of the art" CAD systems require much more proactive management than highly functional ones.