Title: Cessation of an era, collapse of a giant: a review of Nokia with a qualitative system dynamics approach

Authors: Omur Y. Saatcioglu; Nergis Ozispa; Burhan Kayiran; Emir Ozeren

Addresses: Department of Logistics Management, Maritime Faculty, Dokuz Eylül University, Buca, Izmir, Turkey ' Department of Maritime Business Administration, Maritime Faculty, Mersin University, Mezitli, Mersin, Turkey ' Department of Maritime Business Administration, Surmene Faculty of Marine Sciences, Karadeniz Technical University, Surmene, Trabzon, Turkey ' Department of Tourism Management, Faculty of Tourism, Dokuz Eylül University, Buca, İzmir, Turkey; Oxford Brookes Business School, Oxford Brookes University, Oxford, England, UK

Abstract: This study aims at understanding the demise of Nokia, a pioneering high-tech firm and leader in the mobile phone market for nearly 14 years. It investigates the main factors influencing Nokia's business and innovation performance during its collapse from the perspective of business functions, innovation types and innovation adoption. Drawing on an extensive review of the literature on Nokia via a qualitative system dynamics approach, we developed a holistic framework based on Nokia's past failures. The key lessons learned were: the firm's strategy between 2003 and 2013 seemed confusing with ongoing internal struggles, a lack of clear strategic vision and decisions from top management, an inconsistency in organisational design choices and inadequate response to rapid technological changes and advances in the smartphone industry prevail. The paper contributes to a more nuanced understanding of cause-and-effects of Nokia's failure by identifying major variables within qualitative system dynamics model.

Keywords: business and innovation performance; innovation adoption; open innovation; business model innovation; reverse innovation; coopetition; Nokia; high-tech; mobile phone industry; system dynamics method.

DOI: 10.1504/EJIM.2025.148789

European Journal of International Management, 2025 Vol.27 No.2, pp.324 - 360

Received: 13 Sep 2020
Accepted: 29 Mar 2021
Published online: 25 Sep 2025 *

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