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This work analyses the potential for information technology projects (IT) to become a source of competitive advantage and the prospect of these projects contributing to the formation of local productive arrangements. The analysis is based on case research carried out in industrial companies in the ABC region of Greater São Paulo. Private companies, IT suppliers and the region’s city administrations took part in the research. The research found that the large companies that were looked at consider IT projects as a source of competitive advantage, but show no inclination to broaden the scope of these projects in the sense of favoring the formation of “local productive arrangements”, which would improve the technological level of small companies in the region and would contribute to regional development.Key-words: Information technology. Local productive arrangements. Business networks.
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