Muttanachai Suttipun

Type of the article: Research Article

Abstract
Mandatory reporting regulations challenge management adaptation. Organizational response patterns during regulatory transitions in emerging markets require further investigation. The study examines managerial responses of Thai-listed companies to the mandatory One Report regulation in 2021 and classifies firms into strategic clusters based on adaptation patterns to International Integrated Reporting Framework components. The paper used a comprehensive Integrated Reporting Quality Index and two-step cluster analysis on 232 annual reports from 58 largest companies in Thailand’s SET50 index (2019–2022) to move beyond simple compliance measurement and identify distinct managerial strategies and their organizational implications. Results demonstrate significant improvement in the quality of managerial responses to the regulation, representing a 36.4% increase, from moderate levels (X̄ = 1.21, SD = 0.24) before implementation to high levels (X̄ = 1.65, SD = 0.18) afterward. Wilcoxon signed-rank tests confirmed statistical significance (Z values between –3.205 and –5.526, p < 0.001). Notably, cluster analysis identifies two distinct strategic approaches: Strategic adopters (Cluster 1), who demonstrate comprehensive integrated thinking, and compliance-oriented responders (Cluster 2), who adopt minimalist approaches. The study reveals significant organizational learning over the study period, with strategic adopters growing from 27 to 44 companies (46.6% to 75.9%) while compliance-oriented responders declined from 31 to 14 companies (53.4% to 24.1%). Mandatory implementation successfully catalyzed strategic differentiation, though challenges in disclosing non-financial capital persist. These findings provide crucial insights for managers seeking competitive advantage during regulatory transitions and for policymakers designing effective governance frameworks.