Intense competition, demanding customers, and shortening product life cycles are prompting small- and medium-sized enterprises to invest in advanced manufacturing technologies (AMTs). Small manufacturers often depend on large manufacturers for orders and so require design as well as manufacturing flexibility on their part. One way of achieving the flexibility is through adoption of AMTs. The decision to invest in AMT is a major decision and thus requires proper consideration to all the aspects of the implementation process before a final commitment is made. Although the technical capabilities of AMTs are well proven, neither practitioner nor academics agree upon a framework for its successful implementation. Using Churchill’s model (Steps 1 and 2) and drawing a link from the available literature, a theoretical framework is developed for the successful implementation of AMTs in small- and medium-sized enterprises. Three implementation phases—namely, planning, preimplementation, and postimplementation—with 14 major issues have been developed; 52 constituent factors have been identified from these issues through literature review and interviews with industry professionals.