THE ICT FOUNDER’S EXIT NAVIGATION: AN INTERPRETIVE APPROACH

Abstract

This study’s research question is, "How do Information and Communication Technology (ICT) founders navigate the exit process from their firms?" Exit concludes an entrepreneurial process. Despite its importance, the entrepreneurial exit, a process by which firm founders remove themselves from primary ownership and decision-making – has received insufficient attention from academics and entrepreneurs. Most of the literature has historically focused on venture creation and growth. Exit is a process that is influenced mainly by triggers at individual, firm, and environmental levels. Most entrepreneurs are not as aware, prepared, or experienced in exit. However, their financial and personal satisfaction from an entrepreneurial entry depends on the success of their exit. This qualitative exploratory study focused on the founders of ICT firms in Ontario as the level of analysis. The study had a sample size of 20 for interviews and adopted the Gioia methodology to explore new themes. Three key findings emerged in this study. First, the motivation for the founders’ entry could be internal or external. Generally, entrepreneurs with a lifestyle motive ran their businesses longer than those with growth-oriented motives. Many founders did not have clear goals or a defined exit plan, and the exit motives were as heterogeneous as entry motives. Second, arriving at an exit decision was more emergent than deliberate (due to many known/unknown variables). Third, exit triggers beyond the individual level, at the levels of firm and environment, influence exit. This study had an unexpected but significant discovery, which could be missed by outcome-focused (success or failure) quantitative research. This study showed how several founders had a premature or failed exit attempt that led to further development or new activities towards the same or a different exit mode. The findings are elaborated in greater detail in Chapter 4, and a concept highlighting the emergent nature of entrepreneurial exit is presented. There are recommendations for further research and implications for academics, practitioners, and policymakers. More informed decisions, better advice, and reduced exit barriers would amplify the personal and social gain in entrepreneurship.