With careful theoretical development and empirical data examination, this paper investigates several key factors that influence the IT usage in Shanghai firms: technology resource, human resource and environment resource. On the basis of the resource-based view and the process model, the study imports government regulation policies, as well as e-government actions, as environmental resource to affect firms’ IT usage. By surveying 398 manufacturing firms in Shanghai and statistically analyzing the field data using structural equation modeling technique, the study contributes several insights to the IT usage in Chinese firms. First of all, this study sheds lights on the value creation process of firms’ informatization in Shanghai manufacturing industry and validates the route from IT investment to value realization. Second, the findings suggest that government promotion policies have significant impacts on manufacturing firms’ technology infrastructure and IT management decision. However, there is no evidence showing the government impact on firms’ IT usage level.