Special Economic Zones (SEZ) have proven to be a powerful engine in fostering regional economy but also excel the capability of a country. This research aims to investigate some major determinants of electronics firms??growth operating in Batam Island which is considered as the first SEZ in Indonesia. By employing qualitative and quantitative approach, the result of this study shows that there are some macro and micro variables that influence the growth of electronic firms. The macro factors consist of good governance, institutional, human resources, labour, and corruption. The micro factors are size of the firm, efficiency in value chain activities, and innovation.