Augmented reality (AR) carries with itself a range of fascinating features which could be implemented by firms across different industry sectors to enhance user experience and add business value. The acceptance of AR can be viewed from two perspectives, viz. the acceptance by the user and acceptance by firms as a technology. However, the research gap observed is noteworthy. For an e-commerce firm, while there has been ample amount of research on acceptance of AR, there seem to be insufficient information on why augmented reality has not been adopted by these firms. In this research-in-progress paper, using the Technology, Organization and Environment using Tornatzky and Fleischer’s Technology-Organization-Environment model (TOE) as the guiding lens, we first theorize the factors significant for the acceptance of AR technology by e-commerce firms. Next, we intend to test the theorized relationships via a field survey of e-commerce firm personnel who are familiar with AR technology. Through this study, we will offer deeper understanding into the TOE framework for the adoption of AR technologies by e-commerce firms. Further, on the practical front, the study will help the e-commerce firms to strategize and focus on specific factors to implement augmented reality effectively.