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Regional competitive inertia and performance of Chinese firms: mediation of post-merger synergy

Author(s): Shenglei Pi, Hailin Lan

This paper reveals that, under themarket fragmentation, Chinese integrating firms have to compete with lots of regional firms in different regions. To gain advantages, firm needs to apply regional repertoires with regional competitive behavior. This paper examines the relationship between regional repertoire and performance, and found out that inertia of regional repertoire is positive associate with performance, which is opposite to the western scholar’s theory. Meanwhile, this paper also explore the mediating effects of post-merger synergy, including operation synergy, sales synergy, management synergy and financial synergy, between regional inertia and performance

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