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Open Access
Article
Publication date: 13 October 2023

Roland Hellberg

A deteriorating security situation and an increased need for defence equipment calls for new forms of collaboration between Armed Forces and the defence industry. This paper aims…

1072

Abstract

Purpose

A deteriorating security situation and an increased need for defence equipment calls for new forms of collaboration between Armed Forces and the defence industry. This paper aims to investigate the ways in which the accelerating demand for increased security of supply of equipment and supplies to the Armed Forces requires adaptability in the procurement process that is governed by laws on public procurement (PP).

Design/methodology/approach

This paper is based on a review of current literature as well as empirical data obtained through interviews with representatives from the Swedish Defence Materiel Administration and the Swedish defence industry.

Findings

Collaboration with the globalized defence industry requires new approaches, where the PP rules make procurement of a safe supply of defence equipment difficult.

Research limitations/implications

The study's empirical data and findings are based on the Swedish context. In order to draw more general conclusions in a defence context, the study should be expanded to cover more nations.

Practical implications

The findings will enable the defence industry and the procurement authorizations to better understand the requirements of Armed Forces, and how to cooperate under applicable legal and regulatory requirements.

Originality/value

The paper extends the extant body of academic knowledge of the security of supply into the defence sector. It serves as a first step towards articulating a call for new approaches to collaboration in defence supply chains.

Details

Journal of Defense Analytics and Logistics, vol. 7 no. 2
Type: Research Article
ISSN: 2399-6439

Keywords

Article
Publication date: 21 June 2013

Štefan Bojnec

This paper aims to contribute to the literature on the changing role of the defence sector in the economy at industry and enterprise levels focusing on defence‐civilian…

694

Abstract

Purpose

This paper aims to contribute to the literature on the changing role of the defence sector in the economy at industry and enterprise levels focusing on defence‐civilian cooperation and defence supply networking with foreign industry enterprises from complex industry‐perspective.

Design/methodology/approach

Measuring is based on the comparative industry data and the unique survey evidence for the Slovenian defence industry enterprises to derive managerial and policy implications.

Findings

The role of the defence industry in the economy declined, but trade deficits from arms and ammunition increased. The industry enterprises can gain from defence‐civilian cooperation and defence supply chain networking with foreign industry enterprises. Information‐coordination institutions are seen to provide opportunities for future industry development in Slovenia.

Research limitations/implications

This research focuses on Slovenia. Future enhancement of the research would be to look into the possibility of applying the findings to other countries. The size of the enterprise, and even more the size of the country, does matter in the defence‐market chain activities.

Practical implications

The proposed industry firm‐level survey approach provides useful policy and managerial implications in the evaluation of defence industry supply and market chain cooperation and networking activities with foreign industry enterprises. The study proves the usefulness of the results, both to the future organizational development and as a decision‐making tool in the complex industry systems.

Originality/value

This paper adds to the industry firm‐level analyses as data management tools for evaluating the defence‐civilian cooperation and networking of complex industry market chain activities for more effective management.

Details

Industrial Management & Data Systems, vol. 113 no. 6
Type: Research Article
ISSN: 0263-5577

Keywords

Article
Publication date: 14 August 2017

Ayhan Aydogdu, Serhat Burmaoglu, Ozcan Saritas and Serhat Cakir

Technologies are constantly developed to address new demands and provide further opportunities. Owing to a number of potential application areas of nanotechnologies within this…

Abstract

Purpose

Technologies are constantly developed to address new demands and provide further opportunities. Owing to a number of potential application areas of nanotechnologies within this sector, the purpose of this study is to take defense as a case and propose a strategic roadmap for the use of nanotechnologies in the Turkish Defense Industry.

Design/methodology/approach

The study presented in this paper uses a bibliometric analysis of the most cited publications in the past decade with the aim of identifying the trends in the development of nanotechnology. Interviews were carried out with experts based on the featured words of bibliometric analysis (nanoparticles, nanostructure, self-assembly, drug delivery, graphene, etc.) to reveal the commercialization time of nanotechnology products and applications. After that, a survey was carried out with engineers for determining the possible emergence time of nanotechnology applications and/or products used in military up to year 2035. Finally, a roadmap was created based on the obtained data from bibliometric analysis, interviews and survey results.

Findings

Nanotechnology roadmap was prepared, one which would contribute to the preparation of the defense industry for the future and help in keeping up with technological developments.

Research limitations/implications

Because of the chosen research approach, the research results may lack generalizability. Therefore, researchers are encouraged to test the proposed propositions further. Interviews and surveys have limitation with the bounded rationality of corresponders.

Practical implications

The paper proposed a nanotechnology roadmap for the defense sector with a data-led foresight practice.

Originality/value

Performing such a study is considered to be crucial for the armies of developed and developing countries, so that the military sector also avails benefits from this revolutionary technology. Quantitative and qualitative methods were mixed for developing the roadmap.

Details

foresight, vol. 19 no. 4
Type: Research Article
ISSN: 1463-6689

Keywords

Article
Publication date: 1 April 1999

Brian Kenny

Following on from the thawing‐out of the cold war and the revolutions of Eastern Europe, the threat of lower armament levels provided opportunities for the rationalisation of…

1023

Abstract

Following on from the thawing‐out of the cold war and the revolutions of Eastern Europe, the threat of lower armament levels provided opportunities for the rationalisation of European defence and its military‐industrial complexes. Coupled with the continuing threat of reduced defence expenditures and increasing competition, defence companies have reacted to the changes with a number of strategic moves involving mergers and acquisitions, market nicheing and diversification, in addition to lay‐offs and plant closures. More recently, moves towards a single European defence industry have been discussed among the major contributing member countries and their industry leaders. The integration of a defence aerospace industry seems well placed to succeed, given French co‐operation, and this should produce a formidable, global competitor. East and Central Europe’s contribution to the equation is questionable, although the early signs are that west European defence companies are establishing firm footholds in the region against strong US competition.

Details

European Business Review, vol. 99 no. 2
Type: Research Article
ISSN: 0955-534X

Keywords

Article
Publication date: 1 December 2000

Colin Butler, Brian Kenny and John Anchor

Reports on research into the relationship between European defence manufacturing firms and their experience of cross‐border strategic alliances. The research takes in 135…

2884

Abstract

Reports on research into the relationship between European defence manufacturing firms and their experience of cross‐border strategic alliances. The research takes in 135 cross‐border strategic alliances involving UK and European defence manufacturing firms, ranging from firms heavily dependent on defence contracts to firms whose defence interests make up less than 10 per cent of overall business. These firms manufacture telecommunications, transport, information, lethal platforms and components for the operation of these platforms for military organisations. A main aim is to ascertain the extent of participation in strategic alliances, the types of alliances being used and the major problems experienced by the partners.

Details

European Business Review, vol. 12 no. 6
Type: Research Article
ISSN: 0955-534X

Keywords

Article
Publication date: 1 March 2012

Chong Wang and Joseph San Miguel

A long controversial issue that divides academics, government officials, elected representatives, and the U.S. defense industry is whether defense contractors earn abnormal or…

Abstract

A long controversial issue that divides academics, government officials, elected representatives, and the U.S. defense industry is whether defense contractors earn abnormal or excessive profits at the expense of taxpayers. Using an innovative industry-year-size matched measure of excessive profit, we demonstrate three findings. First, when compared with their industry peers, defense contractors earn excessive profits. This result is evident when profit is measured by Return on Assets (ROA), Return on Common Equity (ROCE), and Profit Margin Ratio (PMR). The evidence of excessive profit is less consistent if profit is measured by Operating Margin Ratio (OMR). Secondly, defense contractorsʼ excessive profit is more pronounced after 1992, consistent with the conjecture that the post-1992 significant industry consolidation enabled superior profitability due to both the improved bargaining power and increased political influence of the newly combined firms. Finally, defense contractorsʼ excessive profitability increases with poorer corporate governance, as measured by the duality of the Chief Executive Officer (CEO) and the Chairman of the Board.

Details

Journal of Public Procurement, vol. 12 no. 3
Type: Research Article
ISSN: 1535-0118

Article
Publication date: 1 March 2000

Kenneth Penska and Khi V. Thai

The United States defense industry has had a long history of unethical and illegal business practices. Recent polls find that most Americans believe that their nation’s weapon…

Abstract

The United States defense industry has had a long history of unethical and illegal business practices. Recent polls find that most Americans believe that their nation’s weapon acquisition system is one of the worst managed activities in the public or private sectors and the defense industry is neither efficient nor honestly managed. Although the defense acquisition process has been the subject of many reform efforts, it is reasonable to ask whether these reform efforts have had any success. The Defense Industry Initiative on Business Ethics and Conduct, commonly known as DII, is the defense industry’s selfgoverned program responding to the concern regarding ethical business practices in defense procurement. This study is to assess the Defense Industry Initiative on Business Ethics and Conduct in an attempt to find the perceived impact of this self-governed compliance program.

Details

Journal of Public Budgeting, Accounting & Financial Management, vol. 12 no. 3
Type: Research Article
ISSN: 1096-3367

Article
Publication date: 7 August 2019

Silvia Vicente Oliva, Ángel Martínez-Sánchez and Francisco Escribano-Bernal

This paper aims to provide a strategic analysis of firms at the lowest hierarchical levels of the defence industry.

Abstract

Purpose

This paper aims to provide a strategic analysis of firms at the lowest hierarchical levels of the defence industry.

Design/methodology/approach

This paper presents the main results of an exploratory, multiple-case study that analyses the current strategy drivers and their views about the future ones, and their impact at the lowest hierarchical levels of the defence industry in Spain.

Findings

This investigation develops and analyses a contingency model regarding the strategy impact and effects of firms’ drivers and clients, both mediated by the strategy players because of their huge impact on the defence industry. The research model focuses on the internal relations between technical and commercial activities due to the cause and effect of their capabilities. Simultaneously, pull and push mechanisms boost firms’ capabilities and requirements to provide strategic foresight.

Practical implications

Ministries of Defence (MoDs) and prime contractors will remain mediating players in the near future even with further implications for the competition of Defence Technological and Industrial Base (DTIB) firms. It implies that firms and MoDs must maintain a close relation and implement more flexible practices, such as open innovation, property rights or new commercialization schemes.

Originality/value

This study offers insights related to the specific applications and the necessity of commercial and technological areas alignment of these firms for the future.

Article
Publication date: 1 June 1999

Stephen Martin, Keith Hartley and Bernard Stafford

Although the Cold War is over, the dangers of international armed conflict remain. Multinational talks about restricting the arms trade stalled in 1992. If they resume, what…

Abstract

Although the Cold War is over, the dangers of international armed conflict remain. Multinational talks about restricting the arms trade stalled in 1992. If they resume, what should the British attitude be towards participation in a multilateral agreement to limit arms exports when such exports apparently make a significant contribution to the UK economy? Sensible public debates and choices need information on the likely economic impacts of alternative scenarios. This paper examines the likely effects of a one‐third reduction in the value of UK arms exports. It finds that between 13,333 and 40,000 jobs would be lost and that of those that remain in the labour force over half will find new work within a year. The South‐West would be the worst affected region losing 0.3 per cent of all jobs; defence sales would be cut by between 3 and 8 per cent; aerospace output would be cut by between 5 and 9 per cent , and total exports would fall by 0.5 per cent. There would be initial adverse effects but, over time, resources would be re‐allocated to other industries and regions.

Details

International Journal of Social Economics, vol. 26 no. 6
Type: Research Article
ISSN: 0306-8293

Keywords

Article
Publication date: 1 August 2001

Jordi Molas‐Gallart

Military technology is traditionally shrouded in secrecy. Even joint research between allies can be a marriage of convenience. But with the end of the Cold War and greater…

1144

Abstract

Military technology is traditionally shrouded in secrecy. Even joint research between allies can be a marriage of convenience. But with the end of the Cold War and greater European integration, the technological landscape is changing, and a closer interface is emerging between military and civilian technologies. A worldwide stagnation in defence spending is accelerating the take‐up of commercial off‐the‐shelf technologies, while in the aerospace sector, the factors of safety and the environment are becoming at least as important as cost.

Details

Foresight, vol. 3 no. 4
Type: Research Article
ISSN: 1463-6689

Keywords

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