Research On Value Creation Of Continuous M&A Of Jidong Cement Based On The Perspective Of Resource Orchestration

Since the 21st century,China has continuously issued policies to promote the development of the cement industry.From accelerating the structural adjustment of the cement industry to addressing overcapacity and then transforming and upgrading to environmentally friendly enterprises,the cement industry has been at the forefront of the world after years of development and reform.The competition in the cement industry has always been fierce,and relying solely on the internal driving force of enterprises for development cannot meet their strategic expectations.Therefore,continuous mergers and acquisitions have become the preferred method for most enterprises to develop and grow.Further research is needed on how enterprises can achieve value creation through continuous mergers and acquisitions while also enhancing the effectiveness of value creation.The existing literature mostly analyzes static factors such as M&A experience or management characteristics and rarely studies the internal relationship between consecutive M&A events.Moreover,the application of resource allocation theory to the study of continuous M&A is not widespread.Based on the above situation,this article attempts to use resource allocation theory to analyze the continuous M&A of Jidong Cement from 2001 to 2021,exploring the process and effects of value creation achieved by Jidong Cement through continuous M&A.Based on the three theories of resource orchestration,synergy,and market power.It summarizes the existing literature at home and abroad related to continuous mergers and acquisitions,resource orchestration,and value creation.Based on relevant theories and literature,this article sorts out 39 M&A events that occurred at Jidong Cement.According to the changes in corporate strategic goals,the continuous M&A events are divided into three stages,and the process of realizing value creation for the enterprise is analyzed on three levels:resource structuring,resource restructuring,and resource leveraging.Finally,evaluate the effectiveness of value creation from both qualitative and quantitative perspectives.The research results show that resource orchestration plays an important role in the process of continuous M&A to create value for enterprises.Enterprises acquire resources and construct resource portfolios through multiple M&As.As the integration of resources continues to deepen,the integration strategy changes from stable to enriched,and then to enriched and pioneering restructuring.Finally,value creation can be achieved through leveraging the environment,industry chain,and platform.This article analyzes the evaluation of value creation effects from both qualitative and quantitative perspectives and finds that continuous mergers and acquisitions can bring rapid value growth to enterprises.In terms of non-financial indicators,the value creation effect of Jidong Cement is reflected in multiple aspects such as market expansion,product line extension,management ability,technical level improvement,and industry position.In terms of market effect,continuous mergers and acquisitions have brought short-term value improvement to the enterprise as a whole,with potential for subsequent growth;however,the long-term market effect reflected by the Tobin Q value is not performing well.In terms of operational effectiveness,profitability and operational capacity indicators are generally improving,while other indicators have significant volatility.In the long run,the value created by continuous mergers and acquisitions for enterprises will gradually play a role.In short,enterprises should pay attention to the interrelationships of multiple mergers and acquisitions and reasonably arrange the resources obtained in order to create value for the enterprise to the maximum extent.It is hoped that the findings of this study can provide a reference point for the future continuous M&A behavior of domestic enterprises.