Objective This study seeks to identify and analyze the critical elements of smart governance that contribute to the successful development and implementation of a smart city. The focus is on understanding the specific factors that enable the transformation of a traditional city into a smart city, with a particular emphasis on the city of Tehran. Methods The primary research method employed in this study is Interpretive Structural Modeling (ISM), which allows for the systematic identification and examination of relationships between key factors. This research is qualitative and of an applied nature, aiming to provide practical insights. Data collection involved targeted sampling, where a comprehensive list of experts in the field of smart cities was compiled. Following extensive discussions, these experts participated in interviews, after which they were asked to complete a detailed questionnaire. Their responses were used to gather the necessary research data. The research environment was natural, with participants including both academic experts in the field of smart cities and executive professionals working in relevant organizations, such as smart city departments within municipalities and other related institutions. Results The findings reveal that significant efforts are underway in Iran, particularly in Tehran, to advance toward becoming a smart city. After reviewing the research background and conducting in-depth interviews, several critical components were identified, including citizen participation, e-government, smart management, technology utilization, the political and institutional environment, internet access and usage, socio-environmental characteristics, transparency, accountability, data exchange, and public-private sector collaboration. Through rigorous analysis of the interviews and existing literature using the interpretive structural modeling method, the study identified the most important and influential factors necessary for realizing a smart city in Tehran. The study highlights that Tehran has made substantial progress in establishing e-government, followed by the adoption of smart management practices, technology utilization, and the creation of a supportive political and institutional environment, which are all recognized as key drivers in this process. Conclusion Cities across the globe are confronting numerous challenges, including traffic congestion, air pollution, excessive energy consumption, and uncontrolled urban sprawl. The concept of a smart city has emerged as a potential solution to these challenges. However, the successful implementation of smart city initiatives requires a comprehensive and integrated decisionmaking framework. The notion of smart governance has thus gained prominence, attracting the attention of scholars across various fields, including public administration, policymaking, political science, and information technology. This concept plays a pivotal and supportive role in the development of a holistic decision-making framework for smart city initiatives. This research focuses on Tehran, one of Iran's most prominent metropolises in the realm of smart city development. The study concludes that three elements—e-government, the political and institutional environment, and the utilization of technology—are paramount in the successful realization of a smart city in Tehran and, by extension, in Iran. [ABSTRACT FROM AUTHOR]