Competition within the U.S. National Security Regime: A study of the U.S. Aerospace Defense Sector

Abstract

This article examines the aerospace defense sector and the national export control regime within which U.S. corporations operate. While the U.S. federal government plays many roles in this industry, the focus here is on its role as regulator of defense exports from the United States. From this vantage point, ten case studies illustrate the difficulties faced by companies in this challenging environment, and highlight factors that lead to noncompliance with U.S. government regulations. Firm performance effects are investigated, including impacts on profits, share price, and reputation. The paper concludes with implications for international management practice and international business research that reflect realities in the aerospace defense sector.