Supply Chain Integration And Horizontal Merger Performance

Mergers and acquisitions (M&A) has always been the efficient selection of enterprises toimprove the allocation of resources. However, practice and empirical research aboutM&A athome and abroad in recent decades indicate that the impact of acquisitions on firm performanceis uncertain.Successful merger integration can compensate for the lack of pre-acquisition strategy,while the failure of merger integration is likely to make early efforts in vain. Supply chainintegration plays an important role in merger integration.Although in practice, supplychainintegration has received more and more attention; empirical studies onrelationshipsbetween supply chain integration and performance are not too many.Using data of manufacturinglisted companies from2006to2010which occurredhorizontal M&A, the paperexplored theimpact of supply chain integrationon performance from the perspective of the integration processand results. Two studies are included in this paper.From the perspective of the integration process, study1investigatedthe effects of supply chainintegration change on financial performance change and market performancechange. Theresultsshow that,internal integration changeand customer integration changehavesignificantpositive effects on financial performance change as well asmarket performancechange;supplierintegration doesn’t have a significanteffect on both financial performance change and marketperformancechange.From the perspective of the integration result, study2investigated whether the level of supplychain integration affects the performance of horizontal mergers. The resultsshow that, supplierintegration and client integration both have significant positive effect on stock performance;internal integration, supplier integration and client integration have significant positive effect onfinancial performance; internal integrationand client integration have significant positive effecton market performance.In the course of the study, it expands and enriches the empirical research about the relationshipsbetween supply chain integration and merger performance.The article also has someshortcomings. Future research studies canbroaden study year, or use structural equationmodeland other research methods to improve the objectivity and accuracy ofresult, in order to provide a basis for decision rather than reference to improve the level of enterprise supply chainintegration.