Research Of The Relationship Between M&A Management Capability And M&A Performance

Although the financial crisis continued to affect the global economy, the temperature of M&A activities is still not lower than before. But the fact that most of the M&A activities have not reached the initial project goals, which indicate that current researches can not fully explain the factors which are critical to the M&A performance. As M&A activities are related to many fields, the studies should not only base on single dimension, but also from multi-dimensions. This study is based on the capability theory of enterprises, and raises a new point as "M&A management capability is a critical influencing factor of M&A performance". The study would contribute to the research of M&A performance and the capability theory of enterprises, and provide some experiences on practices of M&A management.On the basis of main issue "M&A management capability is a critical influencing factor of M&A performance", the following aspects would be discussed.At first, as M&A management capabilit belongs to a new developing research field, based on fully combining ability theory views of enterprise, and started from the viewpoint of dynamic ability theory, this study constructs the concept frame of M&A management capability. Three angles are stated in this frame:the first is to define the M&A management capability as "the learning mechanism which enterprises will use to obtain, propagate, share and study the knowledge relevant to M&A"; the second might classify the M&A management capability from the dimensions of time, origin and knowledge capital; the third would describe the relationship between the M&A management capability and competitive advantage, and have set up three level structure of M&A capability, which are resources, M&A operation capability, and M&A management capability, and point out that "M&A operation capability" is the source of enterprises to compete on M&A field in the short run, and "M&A management capability" is the source of enterprises to compete on M&A field in the long run.The second, on the basis of understanding routine of M&A and the knowledge convention of M&A in-depth, this study would structure the function mechanism model of M&A management capability. This model is a close system on knowledge circulation of M&A, which is also the appreciation course of M&A innovation knowledge capital. The experience of M&A can be realized through the learning mechanism, to form the rountine of M&A, and further to improve the M&A operation capability, and promote the M&A performance finally. Accordingly, the enterprise would maintain competing advantage continuously on M&A field. Base on the above-mentioned analysis, the core issue of this article is supposed:M&A management capability is the critical factor which affects M&A performance.The third, the key factors and sub factors of M&A management capability have been identified as setting up the M&A management function organization, allocating the M&A professional personnel and constructing the M&A learning procedure of the organization, at the same time have been explained the influence on M&A performance. Base on the above-mentioned analysis, the hypotheses of our study are:the key factors of M&A management capability positivly affect M&A performance and the key factors of M&A management capability affect each other.The fourth, this study uses the data of Chinese sample enterprises questionnaire to test the "the correlation between the M&A managemengt capability and M&A performance ". The certainty factor analysis result shows that most variables in the model have met demands of reliability and validity. On this basis, the study adopts the structural equation model to verify relevant assumptions furthermore. The study got the diagram of relationship between M&A management capability and M&A performance through data analysis. The statistics results have proved the evidence to support the hypothese which we have supposed.The fifth, finding out how to construct the M&A management capability in the concrete M&A practice, and strengthening on the understanding of how M&A management capability influence M&A performance via the case study of China Steel Group, which has deepened and proved evidence to support the assumption in the study further.As the M&A management capability is a new field of study, so the main significance of this study is offering the theoretical foundation for the fact that enterprises who structure M&A management capability would improve M&A performance. Enterprises can leverage the M&A experiences inside or outside and transform them into their own newer M&A convention via M&A management capability, in order to adapt to the change of the environment, and then improve their M&A operation capability, and promote their M&A performance finally. So they can continuously maintain the competitive edge in the M&A field, which is especially important to enterprises which plan to adopt grow up strategy via M&A. In order to effectively improve M&A performance, those enterprises should foster their own M&A management capability in the following three respects:building up the functional department to management M&A activities, assigning professional personnel to take the specific responsibility of M&A, and setting up the procedures to enhance the organizational learning capability of M&A knowledge. The process to structure the M&A management capability is the interactive dynamic process of organization, personnel, and procedures. The organization should be supported by personnel, the personnel should be disciplined by procedure, and the procedure should be guided by the organization. Therefore, it is not enough to emphasize on one side, but it should be considered synthetically from the whole angle, and adjusted dynamically at any time. In this way, the success of M&A would be guaranteed.