Research On Corporate Mergers And Acquisitions From The Perspective Of Supply Chain

The period of economic reform,industrial transformation and upgrading,and the development and growth of enterprises is always accompanied by mergers and acquisitions(M&A)activities.Since the inception of enterprises as a social and economic organization,covering all countries and regions in terms of space and spanning all periods of economic development and all stages of the industrial cycle in terms of time,there has never been a halt to M&A activities,in order to seize development opportunities,increase market share and broaden business scope.Especially around the time of the industrial revolutions,a wave of mergers and acquisitions sweeps the world.In today’s increasingly specialized division of labor and competitive markets,suppliers,manufacturers,retailers and other types of enterprises cooperate and compete with each other in a series of production and distribution processes from raw materials to intermediate products to final products,forming an intricate supply chain.In the process of competition and cooperation between supply chains,between enterprises at the same tier,and between upstream and downstream enterprises,an equilibrium state of interdependence is formed.In such a business environment,mergers and acquisitions not only lead to adjustments in the production,pricing and operational strategies of the participating firms,but also affect the strategic decisions of competitors at the same level,related upstream and downstream firms,and ultimately the consumers at the end of the supply chain.Based on this,this paper will explore the impact of M&A activities from the supply chain perspective.Based on the real-life background of M&A and the research progress in supply chain management theory and operation management theory,this paper focuses on horizontal and vertical M&A activities and analyses the effects of M&A activities on various types of enterprises in the supply chain from the perspective of supply chain dynamic equilibrium.Specifically,this paper firstly constructs supply chain models by mapping out the competitive relationship between supply chain members based on the real-life problems under study.And on this basis,we analyze the effects of different M&A modes and their impact on the competitive relationship,price decision,output decision and inventory decision of firms in the supply chain.In terms of specific research content,this paper investigates horizontal and vertical M&A according to the industry dimension of M&A in supply chains;according to the presence or absence of uncertainty in the production and sales segments of supply chains,this paper analyses M&A activities in a deterministic market environment and in an uncertain environment.In addition,based on the substitutability and complementarity relationships between supply chains and products,this paper explores the impact of product competition on the outcome of mergers and acquisitions;based on the directionality of the research problem and the differences in supply chain structures,this paper constructs different models of supply chains under two-tier and three-tier oligopolistic market structures;based on the differences in the market power of enterprises and the sequence of their decisions,this paper portrays the game relationships between enterprises.This study constructs supply chain equilibrium models from the perspective of corporate gaming in the supply chain,and analyses the impact of the position of the merging firms in the supply chain and the relationship between firms on the outcome of mergers and acquisitions.In studying horizontal M&A,this paper focuses on the impact of the various types of effects generated by M&A activities and the competitive relationships between upstream and downstream firms on post-merger equilibrium outcomes.In the study of vertical M&A,unlike the comparative analysis of the equilibrium outcomes of decentralized and centralized supply chains,this paper argues that the M&A will lead to changes in the structure of the supply chain,the competitive relationship between firms,and the decision-making patterns of firms,prompting them to adjust their strategic decisions and thus form a new dynamic equilibrium outcome.In addition,unlike the research perspective on supply chain coordination under yield and demand uncertainty,vertical M&A will lead to changes in firms’ production and inventory decision patterns,thereby improving supply chain operational performance.By examining the M&A activities of firms in different supply chain models,this paper finds that the differences in market structure and competitive environment for M&A firms make significant differences in the effect of vertical and horizontal M&A and the impact on other members in the supply chain.In general,synergy effect and market power generated by horizontal M&A are beneficial for firms to gain the competitive advantage and benefit from horizontal M&A.However,the results of vertical M&A show that although vertical M&A can reduce transaction costs and eliminate the effects of double marginalization,the change in post-merger market competition does not always result in the expected profit levels for the firm.When considering the uncertainty faced by firms in the supply chain,full integration mode is not always the best option for firms to merge vertically.In addition,for firms in the supply chain that are not involved in mergers and acquisitions,prices and demand can increase or decrease simultaneously due to competition between supply chains and products.However,M&A activity is not always detrimental to same-tier competitors,and reduced levels of competition due to market force may allow non-participating firms to gain more from M&A.For consumers in the supply chain,the impact of M&A activity on prices depends on the outcome of the game between enterprises.This paper systematically analyses the impact of corporate M&A activities in the supply chain,which has certain theoretical significance for enriching the study of M&A theory and supply chain management.Specifically,this paper constructs four supply chain models and systematically analyses M&A activities under this logical framework,providing a new direction for the study of corporate competition,inventory management and performance management in the supply chain perspective.This paper also explores corporate M&A activity under conditions of yield and demand uncertainty,providing a new perspective on supply chain coordination research.As M&A is a highly practical and influential business activity,the research provides management insights for all parties involved in the supply chain and has implications for the implementation of M&A strategies,the adjustment of non-M&A firms’ strategies and the formulation of anti-trust policies.