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Extranet has received growing popularity among business-to-business trading partners today. It has been used to reduce delivery lead-time and improve customer service. The inter-organization nature of Extranet, coupled with the omnipresence of Internet, create competitive advantages for a company over those who do not have Extranet linkage. This study investigates the factors affecting the adoption of Extranet in rubbers and plastics industry. The results reveal that “characteristics of end user” is the most importance factor affecting the adoption. The other significant factors include the characteristics of business itself, degree of understanding new technology, the characteristics of business network, and the support of top management.