The rise and fall of technology companies: The evolutional phase model of ST-Ericsson's dissolution

Abstract

Although joint venture dissolution among technology firms has been recognised as a common feature of both the twentieth and twenty-first centuries, our understanding of the complex processes involved remains limited. This study advances entrepreneurship research on joint ventures by examining the dissolution process and factors that accelerate or hinder the process over time. Our study develops a unified sequential model that elucidates the complexities, processes and factors that lead to dissolution. We illustrate our theoretical analysis using the contemporary case of ST-Ericsson's (2009–2013) dissolution. Our study uncovered three distinct stages in the disbandment process. These stages provide insights on declaration of intent, forming of the dissolution team, distribution of assets and liabilities, and the aftermath. Our study highlights how an entrepreneurial venture so well-conceived can eventually dissolve after few years in operations. We outline the practical implications of the findings and contributions to entrepreneurship and technology foresight.