This chapter develops and empirically tests a theoretical framework to evaluate the impact of national institutional frameworks on the organization and innovation strategy of entrepreneurial technology firms in the software industry. It then develops and tests a number of empirical hypotheses linking the orientation of national institutional frameworks to the successful governance of organizational dilemmas facing different types of entrepreneurial firms in the UK and Germany. Using a cluster analysis, the paper empirically demonstrates the existence of distinct types of entrepreneurial firms within the software industry, and then shows that national patterns of specialization across these firm types are influenced by the orientation of national institutional frameworks.