Leadership Communication in Cross-Cultural Integration Process: Case Study in Pertamina Hulu Mahakam (PHM) M&A of Total E&P Indonesie (TEPI)

Meisya Risty Azzahra, Acniah Damayanti, S.I.P, M.Sc.

2024 | Skripsi | Ilmu Komunikasi

Merger and acquisition (M&A) strategies are progressively prevalent for corporate expansion, particularly in the emerging cross-border transactions within the Indonesian market. The upsurge of foreign investments toward the oil, gas, and energy sector necessitates a critical understanding of effective communication in cross-border deals. This significance in communication and cultural integration demands competent leaders and their communication skills. This research aimed to determine the leadership communication and culture of top management in cross-culture M&A case of Pertamina Hulu Mahakam (PHM). This study applied case study within a descriptive qualitative method, using interviews as data collection and pattern-matching analysis. Informants are coordinators for the transition and integration team, experts in their respective field with over 20 years of experience. Discussion on effective leadership communication showed dynamics between French and Indonesian leadership culture significantly influence leaders’ perceptions, processes, and outcomes. Using leadership communication theory and concepts, findings suggest that effective leaders are consistently straightforward, permissive, and open in their communication to team members throughout stages of the M&A process. Several major decisions including creating a transition taskforce, proposing a mirroring organization, no restructuring agreement, and retaining all talents demonstrates dominance of French mannerism. Analysis based on Hofstede and GLOBE studies shows that leadership communication and culture of top management were French in their leadership profile consisting of team-oriented leadership and charismatic leadership. Recommendations include opportunities on the nature of the study and practical suggestions such as integration programs, townhalls, other communication channels, and internal team gatherings.

Merger and acquisition (M&A) strategies are progressively prevalent for corporate expansion, particularly in the emerging cross-border transactions within the Indonesian market. The upsurge of foreign investments toward the oil, gas, and energy sector necessitates a critical understanding of effective communication in cross-border deals. This significance in communication and cultural integration demands competent leaders and their communication skills. This research aimed to determine the leadership communication and culture of top management in cross-culture M&A case of Pertamina Hulu Mahakam (PHM). This study applied case study within a descriptive qualitative method, using interviews as data collection and pattern-matching analysis. Informants are coordinators for the transition and integration team, experts in their respective field with over 20 years of experience. Discussion on effective leadership communication showed dynamics between French and Indonesian leadership culture significantly influence leaders’ perceptions, processes, and outcomes. Using leadership communication theory and concepts, findings suggest that effective leaders are consistently straightforward, permissive, and open in their communication to team members throughout stages of the M&A process. Several major decisions including creating a transition taskforce, proposing a mirroring organization, no restructuring agreement, and retaining all talents demonstrates dominance of French mannerism. Analysis based on Hofstede and GLOBE studies shows that leadership communication and culture of top management were French in their leadership profile consisting of team-oriented leadership and charismatic leadership. Recommendations include opportunities on the nature of the study and practical suggestions such as integration programs, townhalls, other communication channels, and internal team gatherings.

Kata Kunci : merger and acquisition, cross-border, leadership communication, cultural integration, oil and gas strategy