The adoption and utilisation of information systems (IS) by small-and medium-sized enterprises (SMEs) across heterogeneous culture, locales, and markets are a critical and an ongoing challenge. Such challenge requires more than just good ideas and extensive resources.
It requires organisational capabilities which can be labelled as “enacted capabilities”. This study defines enacted capabilities as the firm’s ability to mobilise and deploy IS-based resources in combination or co-present with other resources and/or capabilities within SMEs Consequently, the aim of this study is to make a contribution by empirically examining the SMEs enacted capabilities that may influence the success of IS adoption. In line with this objective, an IS adoption behaviour investigation at a deeper level is conducted particularly as to why some SMEs are able to adopt, enabled for use and actively utilise IS, while others fail to do so. A survey of 206 Malaysian SMEs was conducted. The IS examined was the government’s electronic procurement systems. Data was analysed using component-based Structural Equation Modelling (SEM) known as Partial Least Squares (PLS). The results indicate that some firm’s enacted capabilities affect the SMEs’ ability to perform or assimilate
IS related strategic change. Thus, some SMEs are more capable to respond rapidly to changes in the IS business environment.