Building Corporate Social Networks Favorable to M&A - A Perspective of Structural Holes
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This article is based on the theory of structural holes, based on the company network formed by the company's senior management team chained, and empirically studied the impact of the structural hole characteristics of Chinese listed companies' corporate networks on corporate mergers and acquisitions. The study found that because the company has more structural holes in the company network, the listed company’s social capital and market information continue to accumulate, resulting in a competitive advantage in “control” and “information”, which helps the company to obtain information and Control the advantages and obtain more opportunities for mergers and acquisitions. The richness of the structural holes owned by the company has a significant positive correlation with the willingness to merge and acquire, which has a positive effect on M&A. Starting from the structural hole theory and the conclusions of this paper, we can obtain the principle of building a social network that is conducive to company mergers and acquisitions: the company executives should increase the richness of the company's structural holes in serving in other companies. A very direct and very effective way to build a social network that is conducive to company mergers and acquisitions is that company executives should join the boards of companies with rich structural holes as much as possible, so as to directly obtain more structural holes.
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