An Explorative Study of Firm Age, Experience and OLC Stage: Focus on Korean Venture Firms

This study examines the factors that contribute to a firm's perception of youthfulness in the context of venture firms in Korea. According to previous literatures, firm age serves as a key determinant of an organization’s life cycle (OLC) stage, with older firms more likely to be positioned in later stages. Additionally, this study investigate the moderating effects of three types of explorative experience— innovation, mergers and acquisitions (M&A), and internationalization—on the relationship between firm age and OLC stage. Using a two-stage least squares (2SLS) ordered logit regression, the analysis reveals that while firm age positively influences OLC stage, this effect is significantly weakened by firms' engagement in explorative activities. These findings suggest that older firms can strategically rejuvenate their operations through proactive initiatives such as innovation, M&A, and global expansion.