The Influence Of Merger And Acquisition In Logistics Enterprise On Suppliers And Customers Bargaining Power

Customer bargaining power and supplier bargaining power arise from the resource dependence that the customers and suppliers possess the resources which are needed by enterprises.It will affect the pricing power and profit distribution in the transaction negotiation.Excessive customer and supplier bargaining power will even threaten the survival and development of the enterprise.The theory of resource dependence holds that mergers and acquisitions(M&A)can change the degree of resource dependence and change the inequality of bargaining power between enterprise and its transaction partners.However,this conclusion is mostly qualitative research,and relatively few empirical studies.There are even fewer studies on the customer bargaining power and supplier bargaining power from the perspective of the logistics industry.In this paper,we study on how merger and acquisitions(M&A)in logistics enterprise can influence its customer and supplier bargaining power.The M&A research samples were selected from the CSMAR database and the annual financial report of the logistics enterprises listing the 2008-2017 M&A events.This paper use customer and supplier concentration degree as the dependent variable in benchmark test,and use the debtor days,inventory days and creditor days as the substitution dependent variable in robustness analysis.As the commercial credit level is the result of the game both parties in trade negotiations,the more credit one party obtains,the less will belong to the other.The substitution variables commercial credit level can indirectly reflect the size of the customer's and supplier bargaining power.This paper establishes the multiple regression model by regression analysis,and take serial of test: including baseline regression analysis,robust regression analysis(Systematic GMM regression analysis,substitution variable analysis)and M&A type analysis were performed respectively.The results show that the M&A of logistics enterprises can effectively reduce the concentration degree of customers and suppliers,shorten the debtor days and increase the creditor days.In the test for different types of M&A,this paper found that the horizontal merger in logistics enterprises can effectively reduce both the degree of customers and supplier concentration,vertical M&A and diversification M&A can just reduce the supplier concentration degree.In general,this paper argues that different types of M&A in logistics enterprise can influence its bargaining power in supply chain through different mechanism.Horizontal M&A disperse the original purchase proportion from customers and payment proportion to original supplier by developing comprehensive logistics,thus it can reduce the dependence of the other enterprise in supply chain and decrease the customer and supplier bargaining power.Vertical and diversified M&A can reduce the demand for existing suppliers by merging the upstream supplier industry,thus it reduces the supplier concentration degree and the supplier bargaining power.Finally,this paper puts forward the corresponding countermeasures according to the research results,and provides a reference for the logistics enterprises in China to decrease their customers and suppliers bargaining power and improve their bargaining power in supply chain.