The transmembrane glycoprotein SHPS-1 binds the protein tyrosine phosphatas
e SHP-2 and serves as its substrate. Although SHPS-1 has been implicated in
growth factor- and cell adhesion-induced signaling, its biological role ha
s remained unknown. Fibroblasts homozygous for expression of an SHPS-1 muta
nt lacking most of the cytoplasmic region of this protein exhibited increas
ed formation of actin stress fibers and focal adhesions. They spread more q
uickly on fibronectin than did wild-type cells, but they were defective in
subsequent polarized extension and migration. The extent of adhesion-induce
d activation of Rho, but not that of Rac, was also markedly reduced in the
mutant cells. Activation of the Ras-extracellular signal-regulated kinase s
ignaling pathway and of c-Jun N-terminal kinases by growth factors was eith
er unaffected or enhanced in the mutant fibroblasts. These results demonstr
ate that SHPS-1 plays crucial roles in integrin-mediated cytoskeletal reorg
anization, cell motility and the regulation of Rho, and that it also negati
vely modulates growth factor-induced activation of mitogen-activated protei
n kinases.