Parent Company Research Articles

Changing Role of HR Manager in Global Market Place

Abstract: Research on "Management of Expatriates" is in its early stages. The challenge of preparing expatriate managers to serve as a bridge between parent and subsidiary firms and to thrive in different cultural contexts has emerged as an extra consequence of globalisation for many organisations. Hiring people from all over the world adds another layer of complexity to company cultures. There is a vast array of ethnicities, languages, and cultures represented among these people. Managers tasked with managing teams abroad should receive training to help them navigate cultural differences. An "expat" can be a manager from one nation whose home country's parent company sends them to live and work in another country. Proper training is vital if the expatriates are to succeed in their new surroundings and contribute to the organization's objectives. When employees participate in effective expatriate training courses, they may be better able to handle the challenges and stresses of cultural adaptation. Before, during, and after an assignment, participants get cultural training on subjects such home culture work and living in a host country. It could be more crucial to adjust to a different culture than to completely embrace it. The value of expat assignments is well-known by every prosperous business. By sending employees to work in other countries, a parent firm may help its subsidiaries run more smoothly. When travelling, a person's mindset and behaviour may diverge significantly from their home country. A company runs the risk of creating costly and unsolvable issues if it just talks to locals. By placing an expat onsite, cultural friction can be reduced. also, there are locations on every continent. Quality and safety standards may differ substantially from one country to another. Businesses may respond to client problems more quickly and individually when they hire personnel from different nations. While working overseas, an expat would have absorbed the values and norms of their home firm. Companies now value Expatiate Management. Management and training are two of the main reasons why expats fail.

THE EFFECT OF INFLATION, EXPORT-IMPORT AND INTEREST RATES ON SALES THROUGH GDP/GDP MODERATION VARIABLES

This study aims to determine the effect of inflation, export-import, interest rates on sales in state-owned pharmaceutical holding companies with moderating variables of Gross Domestic Product (GDP). The type of research used is quantitative with primary and secondary data sources related to inflation, export-import, interest rates, GDP and sales. The data used is a combination of time series data for 2018-2022 and cross-section which is then referred to as panel data. The study was also conducted in more depth using a research instrument in the form of a questionnaire with respondents as many as six people who had positions as department heads in the parent company of Pharmaceutical SOEs. Data analysis techniques use multiple linear regression analysis and Moderating Regression Analysis. The results showed that simultaneously the variables of inflation, export-import and interest rates had a positive and significant effect on sales. Meanwhile, the moderation variable, namely GDP, partially affects sales, but cannot moderate the influence of inflation and export-import both in terms of strengthening and weakening the influence of the independent variable on the dependent variable. Other research results show GDP can be a pure moderator of the influence of interest rates on sales. This research has limitations, namely the variables used are macro, therefore for future research it is expected to be able to conduct research using micro variables in the economy. Keywords: Inflation, Export-Import, Interest Rate, GDP, Sales and Holding Company of SOEs.

The impact of reverse knowledge transfers on exploitative and exploratory innovations in MNCs: The role of knowledge distance

This study investigates the impact of reverse knowledge transfers on the exploitative and exploratory innovations of multinational corporations (MNCs) and explores the moderating effect of knowledge distance between parent and subsidiary companies. Based on survey data from 197 Chinese MNCs, we found that internal-oriented knowledge transferred from subsidiaries facilitated exploitative innovations in the parent companies, while external-oriented knowledge had significant positive impacts on exploratory innovations. We also found that greater knowledge distance further promoted the parent company’s exploratory innovations, which were motivated by the transfer of external-oriented knowledge. Surprisingly, the moderating effect of knowledge distance on the relationship between reverse knowledge transfer and exploitative innovation was not significant. The consideration of knowledge and innovation types complemented the research on innovation development by MNCs in developing countries using external knowledge resources. This study also revealed that novel knowledge is the basis and key to the exploratory innovations of Chinese MNCs.

Study of Consumer Behaviour Towards Reliance Jio

The main objective of this project is to study the awareness of Reliance Jio amongst the customers compared to other telecom service providers. The satisfaction of customers is very important and with various products and services offered by the company its customers seem to be meaningless if it‟s not beneficiary to the customer from their end, so the second objective of this research is to study the customer satisfaction level of customers towards Reliance Jio and its services. To achieve success in long run a company needs a thorough study of its SWOT analysis (Strength, Weakness, Opportunities, and Threats). So the third objective of this research is to find the market potential and market penetration of Reliance Jio products and services. Reliance JioInfocomm Limited (Commonly called RJIL) is an Indian Internet access (commonly called „Broadband‟) and telecommunications company headquartered in Mumbai India‟s largest private sector company, is the first telecom operator to hold pan India Unified License. Reliance Jio is setting up a pan India telecom infrastructure to provide fourth generation LTE TDD high speed wireless internet and mobile communication services which was then launched in June 2015. Reliance Jio was founded in 2010 by MukeshAmbani. Reliance Jio offers mobile telephony and wireless broadband. Parent company of Reliance Jio is Reliance Industries and its subsidiary is LYF. To study the objectives discussed two types of sources were used to collect the data: - Primary and Secondary data. Primary data is also called as „First-hand data‟ or „Raw data‟. The primary data primarily means the unfiltered raw data collected by the researcher in the research process. In this project for the primary data a sample of 40 people were surveyed.

Disclosure frequency of parent company financial reporting: Insights from analyst forecasting accuracy

AbstractPrior research predominantly concentrates on the comprehensive financial disclosures of consolidated statements, often overlooking the distinct informational value inherent in the financial statements from parent companies. The debate continues on whether the frequency of disclosures from parent companies should align with that of their consolidated counterparts. The periodic dissemination of a parent company's financials can significantly reduce information asymmetry, thus enabling analysts to promptly and accurately grasp the firm's financial health. Yet, this increased frequency may come at the cost of information reliability, leading to more errors and promoting myopic decision‐making among executives, which might lead to misguided analysis. Drawing on shifts in China's financial disclosure mandates – from obligatory to optional quarterly reporting by parent firms – we observe that analysts tend to generate more precise earnings forecasts for those publicly traded entities that refrain from quarterly disclosures of parent company reports. This enhancement in forecast precision is particularly marked in instances where corporate information quality is substandard or when analyst coverage is extensive. Supplementary findings suggest that this effect intensifies for annual reports audited by firms outside the Big 4 and when there is more coverage by other media. Consequently, our findings imply that easing the stringent quarterly reporting by parent companies and adopting a voluntary disclosure system does not diminish the informational richness available to investors.

Earnings Management via Not-Wholly-Owned Subsidiaries

We investigate an unexplored mechanism of earnings management: income shifting from not-wholly-owned subsidiaries to help the parent company avoid losses at the expense of subsidiaries. Consolidated net income attributable to the parent company (i.e., net income) increases through this mechanism, as the parent company enjoys the full amount of the shifted earnings rather than sharing them with minority investors. We design an empirical model to directly estimate the amount of income shifted from subsidiaries to parent firms. Employing this measure, we find that firms opportunistically decrease earnings of their not-wholly-owned subsidiaries to manage net income upward to avoid losses. The results are stronger for firms with high noncontrolling ownership, firms with large subsidiaries, firms with strong influence over not-wholly-owned subsidiaries, and firms with a high level of related-party transactions. Our results are robust to alternative research designs, including controls for within-firm variations, alternative earnings thresholds, propensity score matching, and entropy balancing techniques. Our mechanism of earnings management is generalizable to other earnings management scenarios, such as share pledging. This paper was accepted by Brian Bushee, accounting. Funding: X. Zhang thanks the National Natural Science Foundation of China [Grant 72102243] for financial support. M. Luo thank the financial support from National Natural Science Foundation of China [Grant 71840011], and the Research Center for Digital Financial Assets at School of Economics and Management of Tsinghua University. Supplemental Material: The online appendix and data files are available at https://doi.org/10.1287/mnsc.2022.03090 .

Are Tobacco Companies in Nigeria Complying With Health Warning Label Regulations on Cigarettes and Other Tobacco Products?

BACKGROUND: Nigeria has approved 50% coverage of text and images of pictorial health warning labels (PHWLs) on packages of cigarettes and other tobacco products such as cigars, smokeless tobacco, and loose tobacco. While there is knowledge on the extent to which LMICs like Nigeria adopt the WHO Framework Convention of Tobacco Control (FCTC), there is need to examine the compliance with adopted packaging and labeling policies to generate knowledge for strengthening existing policies and efforts at enforcement. We assessed agreement with FCTC regulations as well as compliance with Nigerian requirements which are not adequate and do not effectively capture all FCTC requirements to identify the gaps being explored by these companies in an environment of poor regulation in Lagos, Nigeria. METHODS: This descriptive study was conducted in Lagos State, Nigeria, from October 2022 to January 2023. A multistage random sampling method was utilized. Four local government areas (LGAs) with a combined population of 16 million, accounting for 70% of the population in Lagos, Nigeria were selected while three points‑of‑sale were randomly picked from two selected wards in each LGA. Empty discarded packs of cigarette and other tobacco products were collected from these outlets. The pack dimensions were measured and assessed for PHWLs, health warning manipulations and cessation assistance. Findings were assessed for compliance with the FCTC and national legislation. For each compliance feature, we calculated the frequencies and percentages of the packs that were compliant. RESULTS: 704 packs: 434 packs of 22 cigarette brands and 270 packs of 17 different tobacco products including cigars, snuff and loose tobacco were included in the study. Of 434 cigarette packs assessed, 50.3% were compliant with 9 indicators measured. These ranged from 48.8% to 55.5% for individual brands. For cessation assistance, image variability and image manipulation, compliance was 0% across all cigarette packs. Out of 270 tobacco product packs assessed, 10.6% were compliant with the 9 indicators assessed. Of the 12 multinational parent companies and product distributors assessed, the overall level of compliance among them was 24.9%. Level of compliance was noted to very low for companies involved in marketing other tobacco products, ranging from 0% to 20% but moderate for those marketing cigarettes, ranging from 37% to 55.5%. Companies that had no presence or subsidiaries in Nigeria but only export their products were highly non-compliant. CONCLUSIONS: Tobacco companies had low compliance with PHWL on cigarettes and negligible compliance on other tobacco products like cigars, loose and smokeless tobacco. The government should expand and strictly enforce all regulations applying to health warnings, especially on non-cigarette tobacco products and closely monitor companies that merely export their products to the country.

From Dual Commitment to Job Performance: Do Not Turn a Blind Eye to CO-OCB And Job Complexity

By utilizing social change theory and consistency theory, the commitment of employees to both the parent firm and local operations can effectively boost change-oriented organizational citizenship behavior (CO-OCB) and work outcomes. The study aims to examine the relationship between dual commitment and job performance via CO-OCB, and tests the moderated mediating effect of job complexity. Data was acquired by a questionnaire survey from a total of 304 employees and 22 supervisors employed in beauty enterprises in Taiwan during two different time periods. The results showed that dual commitment affects job performance through CO-OCB. Meanwhile, job complexity moderates the mediating effect of CO-OCB on the relationship between employees’ organizational commitment to local operation and job performance. The contribution to the theory and practice of this research is that dual commitment and CO-OCB can indeed bring great improvement to work efficiency and outcomes for employees in order to maintain customer satisfaction when the parent company has promotional programs to execute. Dual commitment being divided to discuss in this study effectively breaks away from current studies on only single organization and the results provide better advice for the beauty industry to focus on dual commitment, CO-OCB, and job complexity for improving work efficiency and performance. Given the intense competition, it is imperative to incorporate cross-cultural management and longitudinal investigations in future endeavors to conduct more thorough examinations.

Constructing organizational culture in an international subsidiary: Elekta healthcare services in Greece

PurposeThis study analyzes the development of organizational culture in an international subsidiary in healthcare through the interaction of the parent company and local culture. Design/methodology/approachWe conducted a single case study on Elekta Greece, a subsidiary of the multinational company Elekta based in Sweden via interviews. FindingsThe company creates a unique organizational culture, called the Philotask culture, that takes into consideration the cultural contexts of Sweden and Greece, the value of philotimo, situation in the market, and the type of company and services. Research implications/limitationsThe model consists of a context-grounded framework focusing on healthcare. Research in other countries and industries can help to generalize this model. Practical implicationsThe findings indicate that to develop organizational culture, managers need to consider the local cultural context. Originality/valueThis research contributes to organizational culture theory, reporting on the Philotask model that emerged.

Restrictiveness of Medicare Advantage provider networks across physician specialties.

The objective was to measure specialty provider networks in Medicare Advantage (MA) and examine associations with market factors. We relied on traditional Medicare (TM) and MA prescription drug event data from 2011 to 2017 for all Medicare beneficiaries in the United States as well as data from the Area Health Resources File. Relying on a recently developed and validated prediction model, we calculated the provider network restrictiveness of MA contracts for nine high-prescribing specialties. We characterized network restrictiveness through an observed-to-expected ratio, calculated as the number of unique providers seen by MA beneficiaries divided by the number expected based on the prediction model. We assessed the relationship between network restrictiveness and market factors across specialties with multivariable linear regression. Prescription drug event data for a 20% random sample of beneficiaries enrolled in prescription drug coverage from 2011 to 2017. Provider networks in MA varied in restrictiveness. OB-Gynecology was the most restrictive with enrollees seeing 34.5% (95% CI: 34.3%-34.7%) as many providers as they would absent network restrictions; cardiology was the least restrictive with enrollees seeing 58.6% (95% CI: 58.4%-58.8%) as many providers as they otherwise would. Factors associated with less restrictive networks included the county-level TM average hierarchical condition category score (0.06; 95% CI: 0.04-0.07), the county-level number of doctors per 1000 population (0.04; 95% CI: 0.02-0.05), the natural log of local median household income (0.03; 95% CI: 0.007-0.05), and the parent company's market share in the county (0.16; 95% CI: 0.13-0.18). Rurality was a major predictor of more restrictive networks (-0.28; 95% CI: -0.32 to -0.24). Our findings suggest that rural beneficiaries may face disproportionately reduced access in these networks and that efforts to improve access should vary by specialty.

How does a parent’s knowledge influence the knowledge bridging of joint ventures?

Previous research has underscored the significance of the equity investment relationship in facilitating knowledge transfers between a joint venture and its parent company. Successful knowledge bridging in joint ventures plays a crucial role in shaping organizational learning and innovation performance outcomes. The empirical evidence on the effectiveness of knowledge transfers, however, presents a mixed picture. Through a rigorous sample selection process, we collect panel data on 366 joint venture-year observations across four industries during an 18-year period to empirically test the proposed hypotheses. In this research, we contend that the ability of joint ventures to act as knowledge bridges depends on the diversity of the parent’s knowledge and the technological similarity between the joint venture and the parent, especially in the context of internal knowledge development. An examination of bridging performance in the relationship between joint ventures and parent companies indicates that both parental knowledge diversity and joint venture – parent technology similarity positively impact the knowledge acquired through the joint venture – parent equity relationship. Furthermore, when the joint venture strongly depends on internal knowledge, the positive relationship among parental knowledge diversity, joint venture – parent technology similarity, and joint venture knowledge bridging becomes more pronounced. Our findings shed light on how the specific features of a parent company contribute to the knowledge learning bridged by a joint venture and underscore the role of equity investments in joint venture firms’ innovation.

Private equity investment in health care delivery, Australia, 2008-2022.

To examine the scale of private equity investment in Australian health care delivery assets (clinics, hospitals, imaging facilities, other doctor-led health care services). Extraction of information about private equity acquisitions of hospitals, clinics, imaging centres and invitro fertilisation facilities in Australia, 2008-2022, from a commercial database (PitchBook), supplemented by information from publicly available online media sources. Number and value of private equity acquisitions of health care assets, 2008-2022; numbers of clinic parent company and clinic acquisitions, 2017-2022. A total of 75 private equity acquisitions of health care delivery assets in Australia during 2008-2022 were identified; the annual number rose from three acquisitions in 2008 to eighteen in 2022. During 2008-2010, five of seven acquisitions were of invitro fertilisation providers; during 2020-2022, 22 of 39 acquisitions were of clinics or clinic groups, including eleven of eighteen in 2022. The total value of the 39 acquisitions for which purchase price could be ascertained (52%) was $24.1 billion. During 2017-2022, the clinic specialty with the greatest number of private equity acquisitions was general practice (256 of 446 clinics purchased within acquisitions). Seven companies owning ophthalmology clinics (24 clinics) were acquired by private equity. Four private equity acquisitions during 2017-2022 included 60 oncology clinics, all related to a single clinic group. The number of private equity acquisitions of Australian health care delivery assets increased during 2008-2022. Doctors should be aware of the motivations and dynamics of private equity companies, as they are increasingly likely to interact with these firms and assets owned by these firms.

Conzinc Riotinto of Australia — Foreign Ownership and Control

Conzinc Riotinto of Australia Limited (CRA) was the largest mining group in Australia after BHP. It had a major influence upon the post‐Second World War mining sector and Australian economy. It was responsible for some of the country's largest resource developments, establishing an integrated aluminium industry, playing the principal role in the development of Australia's iron ore export industry, and developing a major copper deposit on the Island of Bougainville. CRA was established in 1962 as the Australian arm of the British mining group, Rio Tinto Zinc Corporation Limited (RTZ), formed through the merger of The Rio Tinto Company Limited with The Consolidated Zinc Limited. Consolidated Zinc was also London‐listed, although with a deep Australian heritage based on its involvement in lead and zinc mining at Broken Hill. CRA's status as a foreign‐owned and controlled company had a major influence upon its corporate priorities for the two decades following its formation. The company's foreign majority ownership restricted its business opportunities, particularly during the 1970s. However, as early as the mid‐1960s, anti‐CRA sentiment was evident from politicians, public servants, Australian mining competitors and, to some extent, the public. CRA's standing as “un‐Australian” was viewed by company management as an impediment to attracting and retaining quality employees. These factors led CRA to engage with successive Commonwealth Governments to attempt to secure arrangements more accommodating to its business interests. This involved considerations as diverse as the takeover of the London parent company — to facilitate greater Australian shareholding in the Australian entity — through to the restructuring of CRA's interests in a new majority‐owned Australian company. Ultimately, CRA was instrumental in changing foreign investment legislation, providing a pathway for it as a foreign‐owned company to move to an Australianised or majority Australian‐owned status. With this, CRA had an ability to participate in resource investments on terms similar to those for Australian companies. CRA gained naturalising status in 1979 and, in 1986, that of a naturalised or Australianised company. Differences in perspectives relating to strategic direction and financial management between the parent company in London and CRA in Melbourne, brought to the fore issues of control. The situation became so serious that it resulted in the departure of the chairman and chief executive on the eve of CRA achieving Australian majority‐owned status. The events had a later influence on the formation of a dual‐listed company structure in 1996. Through this structure, RTZ regained majority share ownership of the assets previously held in the Australian company. CRA lost its naturalised status and its identity as Australia's then second largest Australian mining company.

Investigating technology development in the energy sector and its implications for Indonesia

Innovations for a low-carbon economy and carbon neutrality are the focal points of technology development in the energy sector. This paper aims to investigate the progress of technology and advancements in the energy sector and the implications for Indonesia via two routes, viz., renewable energy and energy efficiency. The methodology employed in this research is divided into two parts. Firstly, an extensive literature review was conducted to identify prevalent research trends within the energy sector. Second, a case study method was performed to gain a comprehensive understanding of energy transformation within the electricity and steel sectors. The study presents two key findings. First, the energy sector has experienced significant technological disruption, providing the opportunity for Indonesia to transition towards a low-carbon development. This includes smart grids, energy-intensive industries, electric vehicles, and storage (pumped storage and battery). Second, lessons from the steel industry show that the technology selection is sensitive to parent company, and this is not easily captured in literature studies. Indonesian has gained many benefits from the global technological disruption, but this is not sufficient without developing changes in support system and consumer behavior.

Parent company personnel embeddedness and stock price crash risk: evidence from Chinese enterprise groups

PurposeThis study aims to investigate the influence of parent company personnel embedding on the stock price crash risk (SPCR) of listed companies, along with the moderating effect of disparate locations between parent and subsidiary companies and other major shareholders.Design/methodology/approachThis research empirically tests hypotheses based on a sample of listed subsidiaries in China during the period between 2006 and 2021.FindingsOur results demonstrate that personnel embeddedness in the parent company significantly alleviates SPCR in subsidiaries. This effect is even more substantial when the parent and subsidiary companies are in different places. However, other major shareholders in the subsidiary company weaken it. Our additional analysis indicates that, relative to executive embeddedness, director embeddedness exerts a stronger effect on the SPCR of the subsidiary. Mechanism examination reveals that the information asymmetry and the level of internal control (IC) within the subsidiary are significant channels through which the personnel embeddedness from the parent company influences the SPCR of the subsidiary.Originality/valueThis study expands the literature on how personnel arrangements in corporate groups within emerging countries influence SPCR. We have extended the traditional concept of interlocking directorates to corporate groups, thereby broadening the understanding of the governance effects of interlocking directors and executives from a group perspective.

Does Chinese Investment into Europe Facilitate Strategic Asset Growth in the Chinese Parent Company? The Role of Entry Mode

Strategic asset seeking foreign direct investment has undergone tremendous growth over the past decade. This paper first attempts to evaluate the location choice of such investments in Europe. We find that Chinese companies target strategic assets in Europe. The paper then moves to understand the efficacy of these investments in terms of the creation of strategic assets in the Chinese parent company. Our results show the intangible assets of Chinese domestic parent firms significantly increase in the wake of their investments. For greenfield investments, there is a longer time-lag in creation of intangible strategic assets than for acquisitions. However, greenfield investments result in a larger increase in intangible asset creation than acquisition investments.

Sweeping it under the rug: Positioning and managing pollution‐intensive activities in organizational hierarchies

AbstractResearch SummaryMany corporate groups have multiple layers with parent companies owning subsidiaries, which own other subsidiaries, and so forth, in a pyramid‐like ownership structure. We argue that corporate groups perform their pollution‐intensive activities at the lower levels of the corporate hierarchy to buffer the parent from pollution‐related regulatory risks. Our analysis of 7400 US‐based business establishments owned by the 67 largest US‐headquartered chemical manufacturing corporate groups supported this argument. We also found that they were even more likely to do so in states with greater environmental stringency, whether it be in the home state of the parent or the host state of the subsidiary. Our research calls into question the effectiveness of environmental regulations if companies have the opportunity to shift polluting activities lower in their corporate hierarchy.Managerial SummaryMany commentators assert that firms offshore or outsource pollution‐intensive activities to avoid environmental regulations. In this research, we suggest a third approach in avoiding environmental regulations: locating pollution lower in the hierarchy of multilayered corporate groups, which are companies that own subsidiaries that own other subsidiaries and so on. By analyzing data on the 67 largest US‐headquartered chemical manufacturing corporate groups, we found support for this assertion. We also found that pollution is more likely to be located lower in multilayered corporate groups when they are subject to stringent environmental regulations. The multilayered corporate form allows parent companies to insulate themselves from the regulatory risks of pollution‐intensive activities of their subsidiaries through their limited liability status.

The influence of cultural friction on foreign divestment of multinational enterprises--the moderating role of formal institutional distance and political connections.

Multinational enterprises frequently divest their foreign assets in the current economic environment. Existing research, based on friction theory, has mainly focused on the impacts of political and economic disparities on foreign divestment while neglecting the nuanced influence of cultural factors. To address this gap, this paper draws on the cultural friction perspective to capture the diverse cultural resistance faced by each enterprise and explore the relationship between cultural friction and foreign divestment. Data from Chinese publicly listed enterprises engaged in foreign investment are leveraged, and a dual-level analysis is conducted using Logit panel regression and Cox survival analysis to examine the relationship between cultural friction and foreign divestment from both the viewpoints of the parent company and the overseas subsidiary. Additionally, the paper examines the marginal factors that affect the relationship between them from an institutional perspective. The findings reveal that cultural friction has a positive influence on the propensity of multinational enterprises to divest from foreign markets. Interestingly, a "formal institutional distance paradox" is demonstrated in our study, and politically connected enterprises are found to be more vulnerable to foreign divestment due to the "curse of political affiliations".

Bridging the Divide: Navigating Cultural Integration in Cross-Border M&A

With time, the idea of cross-border mergers has become increasingly popular, and presently, Indian corporations are more likely than those in other nations to engage in cross-border mergers and acquisitions. A cross-border merger is demonstrated by TATA Steel's acquisition of the US-based business Corus. 1. Inbound Merger: An inbound merger is a cross-border merger in which the foreign firm is regarded as an Indian company's branch office and the resulting company is an Indian corporation. 2. Outbound Merger: An outbound merger is a cross-border merger in which the merged firm becomes the parent company of the foreign company. The influence of cultural disparities on international mergers and acquisitions (M&As) can be substantial. When two firms with disparate cultural backgrounds come together, they have to adjust to new business practices, communication methods, and beliefs. While there may be difficulties involved, there may also be chances for both businesses to grow from one another and enhance their processes. Thus, the goal of this research is to advance knowledge of the intricate and significant process of cultural integration in international mergers and acquisitions. The research can assist companies in achieving better results in cross-border mergers and acquisitions by identifying the critical elements that affect cultural integration success and formulating recommendations for how to enhance cultural integration effectiveness.

Analysis of Changes In Risk Management Implementation At PT. ABC Based On ISO 31000:2018

The implementation of a company's risk management is important because it can provide input for management to act preventively to prevent risk events that are often detrimental (downside risk). PT ABC as a subsidiary of the nickel mining company as Parent Company has transformed its risk management from partial to integrated based on ISO 31000: 2018. This change must be well prepared to avoid delays in the integration process because PT ABC has a project to develop the Industrial Estate and the RKEF (Rotary Kiln Electric Furnace) Smelter Development with a significant value so that preventing losses by carrying out risk mitigation efforts is important to implement. The purpose of this study is to comprehensively analyze changes in the application of risk management at PT ABC, evaluate the application of risk management adopted by the company, identify challenges faced by the company, and analyze the application of risk management to current business activities. The research method uses primary data through direct observation of existing change preparation practices and uses secondary data from related company data. The basis of the risk method used is the ISO 31000: 2018 guidelines. The results showed a significant impact in the integration of risk management adopted to be more comprehensive than the previous implementation. The risk management ntegration factor of the Parent Company and its subsidiaries has consequences for the sustainability of the program and budgeting in the RKAP, especially for improving the quality of risk management analysis through risk awareness programs. The implementation of PT ABC risk management in the RKEF smelter construction project identified 8 aspects of risk which include investment taxonomy (5 aspects), regulatory changes (1 aspect), and environment (1 aspect). Risk mitigation efforts have been carried out in the risk map from 1 aspect of high risk; 5 aspects of medium risk and to reduce the impact and probability that exists, namely: 3 risk aspects (from medium to high) and 5 risk aspects (from low to medium). This shows that there is a fairly good readiness to anticipate risks that have a negative impacts.