Dennis is famed for his strict management approach, and former Formula One team owner Jordan thinks that his style wasn't in line with what other shareholders wanted.
"I knew there were rumblings and unhappiness there, not just for weeks or months but going back years," Jordan told RTE 2FM’s Game On.
"There has been a fall out and Ron’s style of management didn’t quite suit people who owned the company. He’s 69 and has had a great career, a brilliant career, in fact, but obviously something didn’t work for them."
In recent years, McLaren has grown from being a Formula One team, into a thriving technology and road car company, something Jordan feels is behind the racing team's slump in form.
"I’ve always been critical in the commentaries of the McLaren Formula 1 team in recent years. They haven’t been anywhere close to where they were in the past in both the driver’s championships and constructors’ championships that they won," said the Irishman.
"They did that when Ron Dennis had his mind clearly focused on what he needed to do. He was part of the team, he looked part of the team, he dressed like part of the team."
"In recent years he dressed in civvies and he thought the road car business was going from strength to strength, which absolutely, it was. But I do believe that when you take on so much, it is very difficult to keep your eye on all of the things, and motor racing in particular Formula One the technology is moving forward."
Bahrain International Circuit - Winter testing