INTEGRATION PROCESSES AND THEIR INSTITUTIONAL SUPPORT IN THE CONTEXT OF COMPANY DEVELOPMENT PHASES

Abstract

This paper seeks to analyze integration processes and their organizational support in the context of company development along with revealing the nature and essence of integration and consolidation processes. It has been proved that the efficiency of these processes stems from specific rationale behind existing relationships. The first three development phases evidence the prevalence of integration processes based on cooperation and contractual relationships, whereas the final stages are characterized by more rigid integration forms (vertical, horizontal, diversified, mixed) on the basis of mergers, acquisitions, buyouts, etc. The study revealed that in the process of organizational development a company may lose some of the advantages of small and medium companies, such as the simplicity of organizational structure, management consistency as well as creativity, flexibility, leadership and versatility of personnel. To retain these benefits, in the process of organizational design of a large company it is proposed to provide the ability to create flexible and mobile units through corporate clustering of integration participants. The cyclical nature of organizational development assumes that the cumulative effect of business growth factors gradually fade over time, thus becoming a trigger and a cause of recession. In turn, the recession acts as a catalyst for future recovery. The research findings on integration processes offer organizational support to facilitate the company development phases within the objectives tree framework. Specific features and conditions for effective implementation of each of the major objectives of company organizational development have been identified.