A study on synergy of supply chain in horizontal Merger and Acquisition

Today, how to get supply chain synergy in horizontal Merger and Acquisition is a issue with great age-background and practical value. In this paper, the synergistic effects of the supply chain is defined as the sum of all enterprise members´ revenue after Merger and Acquisition which is more than the sum of former all enterprise members´ revenue before Merger and Acquisition. This study presents that supply chain member´s optimal incentive behavior to achieve synergy is the premise of the formation of a new supply chain with optimal cooperation. Supply chain integration is the important means to achieve synergy. Our conclusion brings a framework of supply chain integration in horizontal Merger and Acquisition, including the following several content: Internal supply chain integration; External supply chain integration; Formation of new supply chain; Member collaboration under the condition of synergy. Moreover, this work designs incentive scheme model for collaborative efforts to achieve supply chain synergy goals.