The purpose of this paper is to consider how resource-based theory can be used to explain success with the adoption and use of information systems and information technology (IS/IT) in manufacturing Small and Medium-sized Enterprises (SMEs INTRODUCTIONThe globalisation of the economy is forcing many enterprises to change in order to survive. To compete in these global markets, many manufacturing SMEs need to develop new business strategies and employ new technologies. However, manufacturing SMEs in traditional industries, usually have poor human and financial resources (Bridge et al., 1998; Welsh and White, 1981) and are therefore likely to be less prepared and less able to change. A better understanding of the ways in which SMEs adopt and implement new technologies, like information technology (IT), is necessary because previous research in the area is limited and mostly out-of-date due to the rapidly changing costs of using IT, and the resulting increased adoption by smaller enterprises. Mário M. Caldeira, John M. Ward 1160The Portuguese industry is dominated by small and medium sized enterprises (98% of the total firms in the industrial sector). Because of their lack of bargaining power, scarce resources and low management skills, Portuguese manufacturing SMEs have been deeply affected by the increasing globalisation of the world economy. This research was designed to provide an in-depth understanding and explanation of the relative levels of success in IS/IT adoption and use, in such firms. Through detailed case studies in twelve firms, factors and factor relationships were determined that provided a coherent explanation of the evidence collected. A second objective of the research was to provide further understanding of the causes of the relative levels of adoption and success, by reference to appropriate theory. IS research is often criticised for lacking theoretical foundations or for insufficient reference to theory in explanations of findings. This paper describes how the findings from the study can be understood with reference to resource-based theory.

The objectives of the research were to identify factors enabling or inhibiting the adoption and use of information systems and technology (IS/IT) in Portuguese manufacturing small and medium-sized enterprises (SMEs) and understand how these factors interrelate in determining relative success in the adoption and use of IS/IT. This research elicited factors from previous quantitative and qualitative research, which had been shown to influence IS/IT adoption in SMEs in other contexts. A strategic change framework was used to structure the factors and ensure that comprehensive evidence about their nature and effects could be obtained in the empirical research. Further factors were identified by initial fieldwork, before carrying out 12 in-depth case studies, across a range of situations -different industries, different levels of adoption and a range of degrees of success in IS/IT use. The pattern that emerged from the analysis of the data shows that certain factor combinations and relationships appear to determine the relative degrees of IS/IT success across the firms. This pattern can also be explained by interpreting the roles and relationships of the key actors involved in the process of IS/IT adoption and use. Top management perspectives and attitudes towards IS/IT adoption and use play an important role in the development of internal IS/IT competencies and provide an important contribution to the development of a context that enables IS/IT success.

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