Determination of the Essence of Corporate Integration in the Vector of Development of Corporate Management
Authors:   Private Institution of Higher Education ", Lin Tszusian ,   Rauf Ablyazov East European University"
Published: December 2023

The study is dedicated to determining the essence of corporate integration in the vector of corporate governance development, in particular, foreign and domestic research on the essence and processes of corporate integration in the vector of corporate governance development was thoroughly summarized and the basic principles of corporate integration process management were substantiated. In our research, we came to the view that integration can be represented in dynamics as a process, and in statics as a state, the result of a process. For all the multitude of types of integration, we came to the conclusion that they come down to two options depending on the subject composition of the participants: territorial (interstate, interregional) integration; production integration. The conducted research made it possible to identify within the currents and schools of economic theory different directions for the study of integration activity, which is explained by the complexity, multi-component and interdependence of the components of the phenomenon under study. Also, our analysis of literary sources revealed the absence of a universal approach both to the phenomenon of corporate integration and to its typology. Therefore, its essence and process were considered within the framework of the neoclassical direction, institutional economic theory, from the standpoint of the structural-functional approach and the global economic approach. Today, there is an approach that examines integration processes in two areas: international economic relations and organizational and economic relations at the level of individual organizations. Depending on the direction of corporate integration, the main types of merger and acquisition agreements were highlighted. In the study, according to the level of centralization of functions, two main organizational and economic forms of a corporate association were highlighted and schematically presented: an international corporation and an international strategic alliance. We also considered the management characteristics of the classification of integration associations from several different aspects: level of integration; goals of integration; form of ownership; field of activity; geographic coverage. We have described in detail the forms of international corporations, such as national associations, syndicates, trusts, concerns, and conglomerates, since these forms are a rigid and long-term type of association of companies. It was determined that each of the considered organizational and economic forms can be formed by various methods, which we presented in the author's classification of methods of formation of organizational and economic forms of international corporate integration. It was determined that management of corporate integration processes requires justification, adoption and implementation of management decisions. These decisions are determined by various factors: strategic orientation; new competitive advantages and competencies; interaction with other subjects of economic relations. These parameters affect the development and implementation of management solutions in the field of corporate integration. The article identifies several widely used methods of managing corporate integration processes that help ensure a successful merger or acquisition of companies: strategic planning; project management; involvement of key stakeholders; cultural integration; effective communication. Therefore, the choice of necessary and effective management methods depends on specific circumstances, strategic goals and features of corporate integration. It is recommended to choose those methods that are best suited to achieve successful integration of companies, in particular, they can be combined.