Industrial clusters,as a type of interactive network ecological environment and platform,can promote knowledge and information sharing effectively through value-activity synergies of different firms in supply and value chains.Therefore,compared with firms outside a cluster,enterprises within a cluster can find more good opportunities for M & As,know better what kind of enterprise as the target of M & As,may have lower integration costs and risks,and achieve better performance of M & As.Using A-share listed firms between 2003 and 2009 in manufacturing industry as a sample,it finds that an industry cluster can affect decisions of firms' M & As,that is to say,firms within clusters make more M & As,and achieve more performance promotion than their peers outside clusters.Based on information transmission theory of industrial cluster,this paper studies how an industry cluster affects firms' M & As decisions,deepens the understanding of value creation mechanism of M & As,and besides,also enlightens about how governments should use acquisitions to achieve the transformation and upgrading process of firms within industry clusters.