Business Review


The goal of this study was to examine the association between Business Life Cycle phases and organizational capital using PSX index companies. Mainly, the study investigates the relationship of organizational capital phases during different phases of the life cycle and comparison with high and low organizational capital. To fulfill this objective data has been collected of 56 companies of PSX index companies with yearly observations ranging from 2011-2020. For estimation, a multinomial logistic model was used due to categories of the dependent variable. The results indicate that organizational capital is positively significant at the maturity phase but negatively significant at the introduction, growth shake-out, and decline phase of the Business Life Cycle. Business Life Cycle and size, ROE, Capex, and leverage significantly but negatively whereas age and ATO significantly affect Business Life Cycle phases. The results vary with different phases of the Business Life Cycle. For future study, the study recommended that the scholar increase the number of observations for more accurate results or used different proxy for measuring organizational capital.


Organizational Capital, Firm’s Life Cycle, PSX companies, multinomial logistic regression.



Journal of Economic Literature Subject Codes

B23, C14, C25, D21

Creative Commons License

Creative Commons Attribution 4.0 International License
This work is licensed under a Creative Commons Attribution 4.0 International License.

Published Online

February 07, 2022



Publication Stage



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