Research On The Value Creation Path Of Enterprise Industrial Chain Integration And M&A From The Perspective Of Resource Arrangement

In recent years,China’s electronic manufacturing industry has developed vigorously,and with the support of a series of policies issued by the state,it has been among the forefront of the world in many fields and achieved "corner overtaking".The electronics manufacturing industry is a technology-intensive industry with fierce market competition,and it takes a lot of time and energy to completely rely on the independent research and development of enterprises.In addition,under the current changing market environment,if an enterprise wants to expand its competitive advantage to achieve value addition by improving its core competitiveness,it should not only focus on the development of a certain link of the industrial chain,but expand the business scope of the enterprise to extend to the entire industrial chain.Therefore,in order to achieve high-quality development,More and more electronic manufacturing enterprises speed up transformation and upgrading through industrial chain mergers and acquisitions,break the development bottleneck,and expand market share.However,the acquisition of resources only through mergers and acquisitions is not enough for enterprises to form competitive advantages or realize value creation.Only by fully integrating and coordinating resources can the value of enterprises be improved to the greatest extent.In addition,most of the existing researches discuss the impact of M&A on enterprise value from static perspectives such as M&A purpose and M&A mode,and rarely explore the logic of value creation in M&A process from dynamic perspective.Therefore,this paper takes Luxshare Precision’s M&A events aiming at the layout of industrial chain from 2010 to 2022 as the research object,takes the dynamic innovation perspective of resource arrangement as the entry point,analyzes its value creation path in different stages of M&A of industrial chain,and evaluates its value creation effect using event study method and EVA analysis method.Under the guidance of resource arrangement theory,synergistic effect theory,value chain theory and industrial organization theory,this paper combs and summarizes the literature on industry chain integration and acquisition,value creation and resource arrangement.On the basis of theoretical and literature support,this paper reviews the 14 M&A activities of Luxshare Precision surrounding the industrial chain layout,and divides them into horizontal M&A stages and vertical M&A stages according to the M&A mode of the industrial chain and the changes of the business sectors after the M&A,and according to the theoretical framework of resource arrangement: "Building resource portfolio-resource bunding-forming ability-Using resources to create value",respectively,analyzed the value creation path of the two stages,and finally applied the event research method and EVA analysis method to evaluate and analyze the merger effect.The results show that,from the perspective of value creation path,M&A events are related to each other,forming a complete industrial chain layout,and resource arrangement is very key.In the stage of constructing resource portfolio,the difficulty of constructing resource portfolio increases as the technology and market resource portfolio changes to the diversified strategic resource portfolio.Resource bundling strategy changes from rich type to open type,and the breadth and depth of resource bundling increase.In the process of using resources to create value,business resources develop into industrial chain resources,and the complexity of resource utilization increases.In terms of value creation effect,the implementation of industry chain integration can improve the value of enterprises as a whole and realize the investment expectations of enterprises.Among them,the analysis of the capital market value after the merger of Luxshare Precision shows that the market is optimistic about its merger behavior,which brings considerable shareholder wealth effect,and the positive effect of the merger lasts for a long time,which brings more significant capital market value to the company.The analysis of the financial value generated by the merger and acquisition of Luxshare Precision shows that in the process of the merger and acquisition aiming at the layout of the industrial chain,the EVA value of the company is greater than zero,and the overall trend is rising,indicating that the merger and acquisition has a significant positive effect on the financial index,making the company have a better financial performance and financial value has been improved.To sum up,in order to improve the effect of M&A investment and create more value,enterprises should pay attention to the integration and arrangement of resources,flexibly change the resource arrangement strategy,and give full play to the synergy of resources to achieve the expected value creation effect.Through the research of this paper,we hope to provide some enlightenment for other enterprises in the industry to achieve the expected investment effect and realize value creation.