Outside-insiders: the role of supply networks in post-M&A operational performance
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Date
2025-10-15
Publication Type
Journal Article
ETH Bibliography
yes
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Abstract
Purpose
Adopting network theory, this study explores how efficiency-driven mergers and acquisitions (M&As) affect acquiring firms’ short-term and long-term operational performance and how acquiring firms’ supply network structural attributes moderate the effects of efficiency-driven M&As in both the short and long terms.
Design/methodology/approach
We collect archival data from multiple sources and construct a sample that consists of 1,568 manufacturing firms during 2010–2017. We apply propensity score weighting-enabled fixed effects models to test the proposed hypotheses.
Findings
We find that efficiency-driven M&As lead to decreased operational performance in the short term while having a neutral effect on the firm’s long-term operations. Moreover, both supply network betweenness centrality and structural holes of the acquiring firm help attenuate the short-term negative M&A effect, whereas only betweenness centrality significantly elevates the acquiring firm’s post-M&A operational performance in the long term.
Originality/value
This study provides further evidence to the M&A performance literature by distinguishing the short- and long-term effects of efficiency-driven M&As. More importantly, it advances the understanding of the critical role of supply networks in tackling post-M&A challenges. It enriches the supply network literature by investigating the differential effects of betweenness centrality and structural holes, thereby disclosing the nuances between the bonding and flow functions of supply networks.
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Publication status
published
External links
Editor
Book title
Volume
45 (10)
Pages / Article No.
1838 - 1860
Publisher
Emerald
Event
Edition / version
Methods
Software
Geographic location
Date collected
Date created
Subject
Supply network; Mergers and acquisitions; Operational performance; Betweenness centrality; Structural holes; Network theory