Substantial research that examines the adoption of IT-enabled initiatives by organisations has been conducted in the context of western countries. Existing research shows that IT systems and their adoption are largely shaped by the characteristics of organisations, organisational culture, and business environment. To address the limited understanding of IT adoption practices in developing countries, this paper investigates facilitators and challenges related to technological, organisational and environmental contexts for IT adoption. For this purpose, a case study was conducted with a local Malaysian retail company which experiences enormous competitive pressure from influential international retail giants operating in Malaysia. The findings of the study offer important lessons for organisations operating in developing countries.