Institutional dimensions of scaling technology-based SMEs: the role of governance and regulation

Purpose The purpose of this study is to describe and analyze institutional dimensions to support the scaling of technology-based small and medium-sized enterprises (SMEs). Design/methodology/approach A qualitative comparative case study design was used, drawing on institutional theory. Secondary data from government reports, embassy research briefs and public institutional documents were analyzed through cross-case comparison. The approach allowed for the identification of both enabling and constraining institutional mechanisms across diverse national contexts. Findings Governance – innovation policies – such as targeted scale-up initiatives, innovation hubs and commercialization support – reduce barriers to market entry, foster innovation and facilitate international expansion. Regulatory environments, particularly tax systems, can either enable scaling through incentives or hinder it through administrative burdens and fiscal disincentives. The comparative analysis shows that institutional alignment, tailored to specific contexts, is critical for technology-based SMEs scaling. Originality/value The study integrates institutional theory with comparative evidence on the scaling of small and medium-sized technology-based firms, offering policy recommendations. By bridging theory and practice, the paper provides insights relevant to policymakers, practitioners and scholars, particularly regarding the design of governance and regulatory frameworks that support innovation-driven firms.