Research On The Service Transformation Paths And Performance Of Manufacturing Companies Based On Mergers And Acquisitions

Manufacturing service is an important way to achieve high-quality development of China’s manufacturing industry.Manufacturing service can realize the upgrading of manufacturing industry and improve the position of manufacturing enterprises in the global value chain.However,China’s manufacturing enterprises are still in the state of lacking service capability and significantly low level of manufacturing servitization,which is mainly due to the scarcity of service-oriented resources is a common situation faced by manufacturing companies.M&A is an important way for manufacturing companies to quickly acquire service-oriented resources.So it is important to explore the path and transformation performance of M&A-based manufacturing servitization transformation for manufacturing servitization transformation and upgrading.Guided by resource-based theory,this paper explores the path and transformation performance of M&A-based manufacturing service transformation with the help of fsQCA method,case study method,and financial index analysis method.First,this paper investigates the main paths of M&A-based servitization transformation of manufacturing industry.Based on theoretical and literature support,this paper selects five antecedent conditions in two dimensions of "resource acquisition based on M&A" and "resource integration after M&A",and collates and screens the M&A events of manufacturing enterprises from 2014 to 2018.The paper uses fsQCA method and group thinking to analyze three manufacturing servitization transformation paths through data calibration,single variable necessity analysis,and constructing a truth table for fuzzy set qualitative comparison analysis.Then,this paper analyzes the manufacturing servitization transformation performance.This paper analyzes the cases of service transformation through financial index analysis and industry comparison analysis.Based on the analysis results,the cases are classified into two categories: high transformation performance and low transformation performance.Main reasons for the high or low transformation performance of the case companies are explored using the case analysis method to provide reference for manufacturing companies in service transformation.The research results show that there are three transformation paths for Manufacturing servitization.They are R&D capability-driven,financial capability-driven,and servitization experience-driven.The R&D capability-driven type points out that manufacturing enterprises can improve their servitization level by merging and acquiring service enterprises with strong R&D capability but poor profitability;the financial capability-driven type points out that manufacturing enterprises with abundant capital and strong financing capability can improve their servitization level by merging and acquiring service enterprises with strong profitability;the servitization experience-driven type points out that the servitization experience of manufacturing enterprises can improve their integration capability of servitization The servitization experience-driven type points out that the servitization experience of manufacturing enterprises can improve the enterprises’ integration ability of servitization resources,thus improving the level of servitization.Based on this case analysis of transformation performance,the following conclusions are obtained:(1)integration of upstream and downstream service enterprises can improve manufacturing servitization transformation performance;(2)exploiting synergy between manufacturing and service business can improve manufacturing servitization transformation performance;(3)financial flexibility of M&A parties is crucial in the process of M&A-based servitization transformation;(4)excessive M&A premiums and high performance commitments will increase potential risks in manufacturing servitization transformation;(5)insufficient resource investment in the integration process reduces the performance of manufacturing servitization transformation.Focusing on manufacturing enterprises,this paper explores the transformation path of manufacturing enterprises’ servitization transformation and the reasons affecting the transformation performance,which has certain significance for other manufacturing enterprises to carry out servitization transformation.