Research Of Choice Preference Of Corporation External Growth Modes

Merger and Acquisition (M&A) and Strategic Alliance are two modes often used by corporation to accomplish their external expansion. Facing the increasingly changing economic environments and the increasingly violent competition, the corporations have to choose one in the two basic growth modes. Some choose M&A as their way to growing up, while others are not. But their performance is very poor in our country as well as in the world.The research of the external growth modes belongs to the issue of corporation growth. Many scholars pay their attention to the conformity of the alliance and M&A. So the research of the choice of external growth modes while deciding to external expansion has more important significance. The purpose of this paper is to study the preference of the external developing modes. Studying on this can provide some theory base for the blind decision of strategic choice.Firstly, the paper gives a brief theoretical explanation of M&A and Alliance, then analyzes and compares their characteristics;find out their peculiarity, their advantage and disadvantage in realizing certain strategic objectives. Secondly, based on above analysis, the paper gives five hypotheses from company's characters, environment and transaction. Thirdly, the paper tests the above hypotheses using quantitative analysis. The method is devising questionnaire, collecting datum, applying SPSS software. As a result, five hypotheses are all verified. On the basis of five hypotheses, a model of decision of external growth strategy is presented. Lastly, the paper summarized the conclusions, innovations, limitation of this paper and the prospects of the future research.