EVOLUTION OF THE PETER PRINCIPLE IN TECHNOLOGY SMB’s: THE TRANSITION FROM TECHNICAL ROLES TO MANAGERS

This research examines the evolution of the Peter Principle in small and medium-sized technology companies in Argentina, particularly within the context of knowledge-based micro-enterprises. It explores how transitions from technical to managerial roles are shaped by the systemic interplay between mindset, toolset, and skillset. Drawing on qualitative interviews with professionals from the knowledge-based services sector, the study identifies three recurring profiles with varying probabilities of exhibiting the Peter Principle, depending on the combination of these dimensions. The findings suggest that the fluid structures and adaptive practices of tech startups reduce the rigidity typically associated with hierarchical promotion paths. Instead of proposing a definitive framework, the study introduces an analytical tool to better understand managerial potential and inform context-sensitive development strategies. These strategies, grounded in existing literature, respond to the unique needs and limitations of each profile, highlighting new opportunities for leadership transitions in fast-changing, innovation-driven environments.