Supply Chain Network Integration In Mergers And Acquisitions With Random Cost

Since the implementation of "going out" strategy in China,mergers and acquisitions(M&A)activities are becoming more and more frequently,and M&A have become important ways for the development of domestic and foreign enterprises.Nevertheless,most mergers don't achieve their objectives.As noted by KPMG's global M&A integration business partner Jack Prouty 70% of all mergers can't achieve their stated objectives.Improving integration of merged firms is the key to improve the likelihood of post-merger success.The literatures on M&A in written reports mainly focused on internal-organizational integration.With the development of economic globalization and information technology inter-organizational integration has become the trend of the future development,and suply chain integration between merged companies in particular.Anna Nagurney presented a new model for the quantification of strategic advantages associated with horizontal mergers through the integration of supply chain networks.Many scholars have extended the model.To-date,however,most studies of supply chain networks integration after M&A have based on the fix situation and system-optimization perspective.This paper explores the integration strategic of supply chain network after horizontal M&A under random cost by using the variational inequality and dynamic projection system.The following novel features and contributions are contained:1,the network structure of supply chain network integration after horizontal M&A is established.The model of supply chain network integration after horizontal M&A was established.The existence and uniqueness of the solution were derived.We then used synergy framework to explore the strategic advantages associated with the integration of supply chain networks through the horizontal M&A that could be obtained by solving a variational inequality problem.The examples demonstrate average cost synergy can be achieved through M&A,and the synergy effect is positive correlation with supply chain network degree of centralization.2,based on Risk Attitudes of Decision Makers,the model of supply chain network integration after horizontal M&A was developed.The existence and uniqueness of the model solution were derived.We then used synergy framework to explore the strategic advantages.When the integrated cost is zero,the examples demonstrate the average risk cost synergy,the average expected cost synergy and the average total cost synergy can be achieved through M&A,the synergy effect is positive correlation with supply chain network degree of centralization,and is negative correlation with the variance of the cost.The synergy effects of the average expected cost and the average total cost are negative correlation with the risk weight,and the synergy effect of the average risk cost is positive correlation with the risk weight.When the integrated cost is not zero,the integrated cost is negative correlation with the total cost synergy effect of the supply chain network.3,the dynamic model of supply chain network integration after horizontal M&A was constructed based on instantaneous interference,and the stability of the strategy associated with the integration of supply chain networks through the horizontal M&A was proved.4,based on cost sharing contract the integration coordination model of horizontal M&A supply chain network was presented,the cost coordination strategy of node enterprises after the network integration was gived,and the validity of the model was illustrated.