M & A Strategy And Alliance Strategy Of Application Of The Boundary

Professor Zhang Qiusheng (2004) put forward a model for mergers and acquisitions (M&A) theory that include motivations, capabilities, boundaries, direction, fit, synergies, performance and market of M&As. While a firm is provided with motivations and enough capabilities M&A activity needed, the firm should take all methods for external development in consideration. The firm ought to answer several questions before action: M&A activity is the best strategy or not? If alliance or green field investment can substitute it? How we confirm the application boundaries among them? M&A application boundaries research focus on these questions. This dissertation focus on the applicable boundaries between M&A and alliance.Both M&A activities and alliance of firm have high-lost rate. It comes down to lots of problems, but one of the important influence factors is discrepancy between original intention of making strategy decision and real conditions firm possessed. M&A and alliance have different advantages and disadvantages. The research wholly balances the advantages and disadvantages of each other, and points out M&A and alliance can not be proved beauideal strategies.Current theories provided two chief explanations for firm existence, firm boundaries and inter-firm linkages: the transaction-cost theory and the resource-based theory. The analysis of the dissertation is based on transaction cost theory and resource-based theory. We conclude the key factors of selecting M&A or alliance activities. It includes resource competition intensity, resource digestibility, resource characters, collaboration ability, zone, and market uncertainties (including financing capability, marketing capability and R&D capability). Our entire hypotheses are based on these influence factors analysis, which is footstone of following empirical study.After educed influence factors by use of induction and deductive methods, we analyze filtered 173 samples (hereinto 123 disciplinary samples and 50 testing samples) by means of Fisher Discrimination Analysis. The discriminative model is built by analyzing disciplinary samples, and tested by testing samples. Moreover, the author takes logistic regression analysis into use as assistant model.Chinese firms'M&A samples characters are very different with western country firms'. Chinese firm M&A activities have particularities, including rule, motivation, development course and M&A form. This dissertation uses quantitative analysis to analyze 79 Chinese firms as deal initiator, and found out the low judgment rate of Chinese M&A samples...