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The aim of this paper is to develop an understanding of the adoption and use of EDI in the Portuguese clothing and textile industry. The inherent argument is that although such inter‐organizational systems in small and medium‐sized enterprises facilitate competitiveness through collaboration, the successful deployment of such systems is not solely a function of transaction costs and the resource base of an organization, as has been argued in the literature. In fact the values and attitudes of senior management play a critical role in the adoption of inter‐organizational systems. Various issues are analyzed by critically reviewing the literature, which has traditionally focused either on reducing transaction costs or managing the resource base. The argument of this paper is conducted by evaluating managers’ beliefs and attitudes towards the use of EDI within the Portuguese clothing and textile industry.

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