Research On The Performance Of Enterprise M&A Integration From The Perspective Of Performance Prism Model

Mergers and acquisitions(M&A)are an external way for companies to obtain scarce resources,but 70%of M&A activities have problems due to integration,and later the acquisition business has been divested.Integration is one of the important guarantees for the success of M&A.However,the current guiding theory for M&A integration is more macroscopic and rough,and it is more difficult to use in integration practice.In addition,when studying M&A performance,scholars usually classify them into long-term performance and short-term performance according to the length of the study period.M&A transactions can enhance the value of enterprises in the short term and are recognized by many scholars.However,for the long-term performance of M&A,scholars have not reached a consensus conclusion on whether M&A can enhance corporate value in a long period of time.The reason is that scholars did not strictly distinguish the transaction performance and integration performance of M&A.The period of trading performance measurement is short,and the data used is more standard;but the integration performance is based on heterogeneous M&A integration activities,the motives of different M&A events are different,and the integration activities performed by enterprises are different,too.Therefore,the data needed to evaluate the integration performance of M&A is highly non-standard.The large-scale empirical data collected through open channels does not have the specificity needed to integrate performance evaluation data.Therefore,the main research subject of this paper is what is the path of M&A integration to achieve M&A motives and how to evaluate the degree of realization of M&A motives.Research status:The current research on M&A performance is generally divided by the length of the study period.Event research is often used to study short-term M&A performance and take the cumulative excess return of the window period as the M&A performance.Financial indicators are often used to study long-term M&A performance.They seek the relationship between M&A and corporate value through large sample empirical evidence.But because scholars do not distinguish between transaction performance and integrated performance of M&A,it is difficult to draw a consistent conclusion.Moreover,the existing research mostly focuses on evaluating transaction performance,and there are few studies on integrated performance,and most of the research on integrated performance still only evaluates integrated performance from the financial point of view,which has certain limitations.Research ideas:On the basis of combing the literature,this paper combines the core competence theory and value chain theory of the enterprise,and uses the case study method to track the cases of Suning's acquisition of Red Baby from beginning to end,and analyzes the integration strategy and measures adopted by Suning to realize the corporate strategy and M&A motivation.Then the M&A performance is divided into two aspects:transaction performance and integrated performance and use the performance prism model to evaluate the integrated performance.Research findings:(1)How to conduct M&A integration and integrate performance evaluation is one of the two aspects of the problem.The motivation of M&A is derived from strategy and mission.The performance prism model is used to decompose the path of M&A motivation.The evaluation of integrated performance is the reverse process of decomposing M&A motives;(2)M&A integration strategy is not static and needs to be adjusted according to industry environment or company strategy;(3)The organizational capability dimension in the performance prism model mainly examines how the M&A party transfers and enhances its core competence in the process of integrating the acquired parties;(4)Evaluating M&A integration Performance should consider both process indicators and outcome indicators.