Information Systems Review (경영정보학연구)

The Korea Society of Management Information Systems (한국경영정보학회)
권호 표지
DOI QR코드

DOI QR Code

Large Firms and M&A Trends in the Digital Transformation Era: Implications for Productivity

디지털 전환 시대의 지배적 기업과 인수합병: 생산성에 미치는 영향

  • Young Bong Chang (Business School, Sungkyunkwan University) ;
  • YoungOk Kwon (Division of Business Administration, Sookmyung Women's University) ;
  • Wooje Cho (Graduate School of Business, Seoul National University)
  • 장영봉 (성균관대학교 경영학부) ;
  • 권영옥 (숙명여자대학교 경영학부 ) ;
  • 조우제 (서울대학교 경영대학원)
  • Received : 2022.09.27
  • Accepted : 2022.10.28
  • Published : 2022.11.30
Download PDF
⟨ Previous Next ⟩

Abstract

Despite the recent rapid advancement of science and technology, we have been experiencing the decline in productivity since the 2000s. This study aims to investigate the decline at both industry and firm levels, by looking at the emergence and growth of large firms such as Amazon, Alphabet, and Apple and M&A trends. Following the results of previous studies, our results show that productivity at industry level has decreased since the 2000s. Particularly, in the period after 2011, the deterioration of allocative efficiency due to the large firms and the decline in the growth rate of surviving firms in the industry with low ratio of large firms contributed to the productivity decline. On the other hand, our analysis at firm level demonstrates that the productivity of firms that acquired IT firms improved over the entire period. While M&As have a positive impact on productivity, M&As with a demand-side motive such as market penetration and expansion of channels have a relatively larger impact than the ones for production or operation efficiency. Our results also suggest that the higher the proportion of large firms in a specific industry, the lower the productivity of individual firms in the same industry. Overall, given that the industry's structural changes for digital transformation tends to strengthen the growth of large firms, our findings have significant implications by empirically identifying the relationships of the emergence of large firms, the acquisition of IT/Non-IT firms, and motivations for M&As to firm/industry productivity.

최근의 급격한 과학 기술발전에도 불구하고 2000년대 이후 전 산업에 걸쳐 생산성 하락 현상이 나타나고 있다. 본 연구에서는 이러한 생산성 하락 현상을 아마존, 알파벳, 애플 등 일부 지배적 기업의 출현과 성장 그리고 인수합병 추이를 기반으로 산업/개별 기업 수준에서 실증적으로 규명하고자 하였다. 기존 연구 결과와 유사하게, 본 연구의 분석 결과도 2000년대 이후 산업 수준에서의 생산성은 하락한 것으로 나타났다. 특히 2011년 이후 기간만을 고려하면, 지배적 기업군의 성장으로 인한 산업 내 분배적 효율성 악화 뿐 아니라 지배적 기업 비율이 낮은 산업군의 존속기업 성장률 하락도 산업 전반의 생산성 하락에 기여한 것으로 분석되었다. 반면, 개별 기업 수준의 생산성을 분석한 결과를 보면, IT 기업을 인수한 기업의 생산성은 전 기간에 걸쳐 향상된 것으로 나타났다. 인수합병의 동기는 전반적으로 생산성에 정(+)의 방향으로 영향을 주지만 기술획득, 생산비용 절감 등 공급 측면에서의 효율성 향상을 위한 인수합병 대비 시장침투, 시장정보 획득 및 채널 확대 등 수요 측면에 초점을 둔 인수합병이 상대적으로 더 큰 폭으로 생산성 증가에 기여한 것으로 나타났다. 마지막으로 산업 내 지배적 위치의 기업 비중이 높을수록 개별 기업의 생산성은 하락하는 것으로 나타났다. 디지털 중심으로의 산업구조 변화로 인해 거대 기업의 지위가 더욱 공고해지는 경향을 보이는 현 시점에서, 본 연구 결과는 거대 기업의 등장, IT/Non-IT 기업 인수, 인수합병의 동기 그리고 생산성 변동과의 관계를 실증적으로 규명하였다는 점에서 의의가 있다.

Keywords

Acknowledgement

이 논문은 2021년 대한민국 교육부와 한국연구재단의 인문사회분야 중견연구자지원사업의 지원을 받아 수행된 연구임(NRF-2021S1A5A2A01061430).

References

  1. 조우제, 장영봉, 권영옥, "정보기술 산업에서의 인수 유형별 인수 의도 분석", 지능정보연구, 제22권, 제4호, 2016, pp. 123-138.  https://doi.org/10.13088/JIIS.2016.22.4.123
  2. Andrews, D., C. Criscuolo, and P. N. Gal, "The best versus the rest: The global productivity slowdown, divergence across firms and the role of public policy", 2016, Available at https://www.oecd-ilibrary.org/content/paper/63629cc9-en. 
  3. Autor, D., D. Dorn, L. F. Katz, C. Patterson, and J. Van Reenen, "The fall of the labor share and the rise of superstar firms", The Quarterly Journal of Economics, Vol.135, No.2, 2020, pp. 645-709.  https://doi.org/10.1093/qje/qjaa004
  4. Bessen, J., "Industry concentration and information technology", The Journal of Law and Economics, Vol.63, No.3, 2020, pp. 531-555.  https://doi.org/10.1086/708936
  5. Chang, Y. B. and W. Cho, "The risk implications of mergers and acquisitions with information technology firms", Journal of Management Information Systems, Vol.34, No.1, 2017, pp. 232-267.  https://doi.org/10.1080/07421222.2017.1297641
  6. Chatterjee, S., "Types of synergy and economic value: The impact of acquisitions on merging and rival firms", Strategic Management Journal, Vol.7, No.2, 1986, pp. 119-139.  https://doi.org/10.1002/smj.4250070203
  7. Chen, M. J. and D. Miller, "Reconceptualizing competitive dynamics: A multidimensional framework", Strategic Management Journal, Vol.36, No.5, 2015, pp. 758-775.  https://doi.org/10.1002/smj.2245
  8. Davis, S. J., J. Haltiwanger, R. Jarmin, J. Miranda, C. Foote, and E. Nagypal, "Volatility and dispersion in business growth rates: Publicly traded versus privately held firms [with comments and discussion]", NBER Macroeconomics Annual, Vol.21, 2006, pp. 107-179.  https://doi.org/10.1086/ma.21.25554954
  9. Decker, R. A., J. Haltiwanger, R. S. Jarmin, and J. Miranda, "Where has all the skewness gone? The decline in high-growth (young) firms in the US", European Economic Review, Vol.86, 2016, pp. 4-23.  https://doi.org/10.1016/j.euroecorev.2015.12.013
  10. Downes, L. and P. Nunes, "Big bang disruption", Harvard Business Review, 2013, pp. 44-56. 
  11. Farboodi, M., R. Mihet, T. Philippon, and L. Veldkamp, "Big data and firm dynamics", AEA papers and proceedings, Vol.109, 2019, pp. 38-42.  https://doi.org/10.1257/pandp.20191001
  12. Fee, C. E. and S. Thomas, "Sources of gains in horizontal mergers: Evidence from customer, supplier, and rival firms", Journal of Financial Economics, Vol.74, No.3, 2004, pp. 423-460.  https://doi.org/10.1016/j.jfineco.2003.10.002
  13. Foster, L., J. Haltiwanger, and C. Syverson, "Reallocation, firm turnover, and efficiency: Selection on productivity or profitability?", American Economic Review, Vol.98, No.1, 2008, pp. 394-425.  https://doi.org/10.1257/aer.98.1.394
  14. Gordon, R. J., "Perspectives on the rise and fall of American growth", American Economic Review, Vol.106, No.5, 2016, pp. 72-76.  https://doi.org/10.1257/aer.p20161126
  15. Gordon, R. J. and H. Sayed, "Transatlantic technologies: the Role of ICT in the Evolution of US and European productivity growth (No. w27425)", National Bureau of Economic Research, 2020. 
  16. Gorg, H., "Analysing foreign market entry-the choice between greenfield investment and acquisitions", Journal of Economic Studies, 2000. 
  17. Grullon, G., Y. Larkin, and R. Michaely, "Are US industries becoming more concentrated?", Review of Finance, Vol.23, No.4, 2019, pp. 697-743.  https://doi.org/10.1093/rof/rfz007
  18. Kamakura, W. A., M. Wedel, F. De Rosa, and J. A. Mazzon, "Cross-selling through database marketing: A mixed data factor analyzer for data augmentation and prediction", International Journal of Research in Marketing, Vol.20, No.1, 2003, pp. 45-65.  https://doi.org/10.1016/S0167-8116(02)00121-0
  19. Mansi, S. A. and D. M. Reeb, "Corporate diversification: What gets discounted?", The Journal of Finance, Vol.57, No.5, 2002, pp. 2167-2183.  https://doi.org/10.1111/0022-1082.00492
  20. Melitz, M. J. and S. Polanec, "Dynamic Olley-Pakes productivity decomposition with entry and exit", The Rand Journal of Economics, Vol.46, No.2, 2015, pp. 362-375.  https://doi.org/10.1111/1756-2171.12088
  21. Montgomery, C. A. and H. Singh, "Diversification strategy and systematic risk", Strategic Management Journal, Vol.5, No.2, 1984, pp. 181-191.  https://doi.org/10.1002/smj.4250050208
  22. Olley, G. and A. Pakes, "The dynamics of productivity in the telecommunications equipment industry", Econometrica, Vol.64, No.6, 1996, pp. 1263-1297.  https://doi.org/10.2307/2171831
  23. Parks, R. W., "Efficient estimation of a system of regression equations when disturbances are both serially and contemporaneously correlated", Journal of the American Statistical Association, Vol.62, No.318, 1967, pp. 500-509.  https://doi.org/10.1080/01621459.1967.10482923
  24. Priem, R. L., "A consumer perspective on value creation", Academy of Management Review, Vol.32, No.1, 2007, pp. 219-235.  https://doi.org/10.5465/amr.2007.23464055
  25. Schmidt, J., R. Makadok, and T. Keil, "Firm scope advantages and the demand side", Academy of Management Proceedings (Vol.2012, No.1, p. 15502). Briarcliff Manor, NY 10510: Academy of Management, 2012. 
  26. St. John, C. H. and J. S. Harrison, "Manufacturing-based relatedness, synergy, and coordination", Strategic Management Journal, Vol.20, No.2, 1999, pp. 129-145.  https://doi.org/10.1002/(SICI)1097-0266(199902)20:2<129::AID-SMJ16>3.0.CO;2-F
  27. Wooldridge, J. M., Econometric Analysis of Cross Section and Panel Data, MIT press, 2010. 
  28. Ye, G., R. L. Priem, and A. A. Alshwer, "Achieving demand-side synergy from strategic diversification: How combining mundane assets can leverage consumer utilities", Organization Science, Vol.23, No.1, 2012, pp. 207-224. https://doi.org/10.1287/orsc.1100.0627