Research On The Synergy Of The Electronic Manufacture M&A From The Perspective Of Resource Orchestration

In the past decade,China’s electronics manufacturing industry has entered a bottleneck in its development,with core technologies difficult to break through,low value-added products and increasingly diversified downstream products,making it difficult to meet consumer demand and lagging behind countries such as Europe,America and Japan as a whole.In order to get out of this predicament as soon as possible,China’s electronics manufacturing enterprises urgently need to change in order to achieve "overtaking".However,electronics manufacturing technology is rapidly changing and the time cost of independent research and development alone is too high,so most electronics manufacturing companies choose to use mergers and acquisitions to achieve breakthroughs by directly acquiring off-the-shelf technology.Although the number of M&A events in this industry is increasing year by year,and the scale of the target company of M&A is increasing year by year,the overall results are not satisfactory and cannot achieve synergy effects well;at the same time,the electronics manufacturing industry often conducts multiple M&A in order to obtain more technology,customers,business,market and other resources,which increases the difficulty of resource integration.Therefore,this paper attempts to study the path of how electronic manufacturing companies can effectively orchestrate and integrate resources after multiple mergers and acquisitions to improve the effect of mergers and acquisitions.From the perspective of resource orchestration,Luxshare-ICT is used as an example to study how the company achieved synergistic effects through mergers and acquisitions from 2012 to 2017.Based on resource-based theory,economy of scale theory,industrial chain integration theory and resource orchestration theory,this paper collates and summarizes the literature on M&A synergy and resource orchestration,draws out the dynamic process of multiple M&A conducted by Luxshare-ICT in the light of industry development trends and corporate M&A motivations,analyzes the internal linkages between individual M&A activities,divides the whole process into three stages: building a resource portfolio,bundling a resource portfolio and utilizing resource capacity.The process is divided into three stages: building a resource portfolio,bundling resources and utilising resource capabilities,to explore the synergistic mechanism through which Luxshare-ICT uses M&A to create value for the enterprise and achieve high-quality development.The results of the study show that,in terms of synergistic mechanisms,the individual M&A events of Luxshare-ICT are interrelated and cascading under the resource orchestration perspective.Secondly,Luxshare-ICT integrated and bundled different types of resources,segmented business areas,stimulated technological creativity,maintained customer relationships and maximised the value of resources;finally,the bundled resources were combined to achieve the synergistic objectives of industry chain integration,business transaction diversification and internal operation efficiency.In terms of synergistic effects,the M&A was generally able to bring a leap in value to Luxshare-ICT,realising M&A expectations in three areas: firstly,Luxshare-ICT was able to extend its business to the upstream and downstream industrial chains of the enterprise through the M&A,achieving cost reduction and efficiency gains and increasing its market share;secondly,Luxshare-ICT internal operational efficiency was improved and the efficiency of its services to the external market was enhanced;and Third,with effective resource orchestration,Luxshare-ICT has been able to control its financial risks to a greater degree of stability despite the high frequency of M&A activities.All of this evidence points to significant synergies from Luxshare-ICT resource-based orchestration of M&A activities.