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Immersive technologies (ImT) provide affordances for small and medium-sized enterprises (SMEs) in the manufacturing industry, such as the enhancement and recreation of aspects of the physical world. These affordances are critical due to changes in the SMEs’ environment including increasingly virtualized collaboration and digitization of work practices. However, the adoption of ImT by manufacturing SMEs is still low. Drawing on the Technology Affordances and Constraints theory, and applying a Strategy-as-Practice approach, this study researches the adoption of ImT as a strategic response to environmental changes in German-based manufacturing SMEs. The findings reveal the critical role of constraints of ImT, which act as hindrances to implementation. Specifically, realizing the affordances of ImT requires consideration of, and responses to, the constraints manufacturing SMEs experience, including the constraints associated with the providers of ImT. Thus, this paper expands the understanding of the factors which influence implementation and strategizing of ImT in SMEs.