Defense Companies Research Articles

ФІНАНСОВА СКЛАДОВА МЕХАНІЗМУ МІЖНАРОДНИХ ВИРОБНИЧИХ МЕРЕЖ ОБОРОННО-ПРОМИСЛОВОГО КОМПЛЕКСУ

The article provides insights into financial and economic aspects of international partnerships in the defense sector. A critical review of operational practices of the largest defense companies provides evidence that subcontractor financing (in particular, in case of multi-phase contract financing or investment capital budgeting) is used only if the main contractor gains an advantage (in situations when high demand products are available only from a small, undercapitalised supplier or when a ‘critical’ product supplier faces certain financial difficulties). The findings demonstrate that working and investment capital raising practices refer more to the specifics of how companies accept payments from their customers rather than focusing on the particular military product they offer. Although the company funding needs including capital size and time investment are directly affected by the product type, the factors that drive the company needs in financing are characterised by contract duration and the specific services or products provided to customers in a package. The study suggests a well-reasoned action plan to be implemented at the government level along with specifying the areas of international cooperation to reduce the negative effects from the final severance of value chains between Ukrainian companies and the CIS defense industry. In particular, the study substantiates the need to liberalize the regulatory framework for transferring of military equipment and dual-use goods; the need to change management practices at state-owned enterprises in terms of timely disposal of inefficient assets along with asset corporatization and privatization; the need to reform the standards and technical regulation framework in the area of defense-related product design and manufacturing; the need to implement tax incentives and mandatory payments for defense industry enterprises which invest in production growth. A special emphasis is put on the role of Ukraine – NATO cooperation to modernise the national defense industry and enhance the integration of Ukrainian businesses into global production networks along with demonstrating the benefits gained from international cooperation, in particular this refers to Ukraine's access to important regulatory documents, including military doctrines, which contributes to facilitating reforms within the Armed Forces of Ukraine; approval of the package of measures which are critical to raising awareness and to support NATO partners in the Black Sea region; and finally, the recognition of Ukraine as an Enhanced Opportunities Partner in June 2020.

North Korea targets defence firms and Pfizer

It has been claimed that North Korea is behind an attack on pharmaceutical firm Pfizer and that it has launched a malware campaign against defence companies.

Exploring the Framework for Alliance Performance between Malaysia-Japan Defence Manufacturing Companies – A Conceptual Study

The defence industry is considered an important element of the overall defence capability of any country. Due to this, developing nations across the world have acknowledged the benefits of building a defence industrial base. Hence, there is rising interest in the defence sector to develop a strategic alliance for analysing the role, effect and nature of different types of cooperative behaviour among transnational companies. Hence, this paper intends to explore the antecedents that can help to assess the alliance outcomes for Malaysia-Japan defence companies. The study was based on RBV (resource based view), to discuss the alliance outcomes for both of these countries’ defence manufacturing companies that can help to gain access to their resources for the purpose of increasing their value through a suitable combination of resources. Moreover, four organizational success factors of alliance management are also discussed as a part of the framework explored in this study. This study provides meaningful insights for the defence manufacturing company managers and administrators to plan their current and future investments in building up the organizational success factors for alliance performance discussed in this study to achieve competitive advantage and sustainability in the long run.

Politics, Power, and Influence: Defense Industries in the Post-Cold War

The post-Cold War era is placing the defense industry at a crossroads. If, on the one hand, it is under great pressure to guarantee warlike efforts around the world, with tight budgets and uncertain lead-times, on the other hand, it is seen as a central instrument for national sovereignty and foreign policy. The purpose of this research is to report the state-of-the-art of the existing literature and explore the most relevant research areas in order to provide the conceptual basis for further empirical research. To do so, this study uses a preferred reporting items for systematic review and meta-analysis (PRISMA), which is an adequate technique as it allows one to discover concepts, ideas, and debates about the defense industry. The results evidenced three different approaches to the defense industry—integration, autarky, and domination. In that regard, we present several case studies in which the defense industry is used as an instrument of foreign policy or national sovereignty. Future studies may focus on empirical research to validate the theoretical findings or to identify variables that lead some defense industries to seek synergies, resorting to mergers and acquisitions, while other defense companies prefer to obtain State funds.

The financial condition of corporations of the Russian defense-industrial complex, which are included in the TOP lists of the largest military companies in the world

Research background: Over the recent period, new “players” have appeared on the world arms and military equipment markets as large exporters, which were previously positioned as large importers of weapons. As international experience shows, in order to become a global exporter of weapons and military equipment, one needs to create powerful military companies. Russian defense companies occupy high places in various TOP lists, which provides the country with a stable position in the export markets. An analysis of the financial condition of these companies makes it possible to deepen the assessment of the prospects for Russian arms exports. The authors have repeatedly addressed the topic of Russian arms exports and the place of Russia in the global arms and military equipment trade markets. Purpose of the article: The main goal of the study is to analyze the current financial standing of the leading Russian defense industry companies, which ensure the country’s stable positions in global export markets. Methods: Generalizations of the research are based on the processing and systematization of data obtained from available information sources. By analyzing the statistics, the authors were able to deduce the trends of the current moment and determine the prospects. Findings & Value added: Consideration of the financial condition of backbone enterprises of the Russian defense industry enabled the authors to make an educated guess about what the prospects for Russia hold high positions in the global markets of AME.

무기체계 양산 간 구성품 조달방안별 효과 비교 연구 - 분리계약과 일괄계약을 중심으로 -

In order to develop and produce main equipment of a weapon system, a monopoly defense company may use defense materials produced by another monopoly defense company as components. In this case, Defense Acquisition Program Administration(DAPA) can use either a collective contract in which the DAPA allows the main equipment manufacturer to procure components directly from the other defense company or a separate contract in which the DAPA directly contracts with the component producer to procure components and supply them to the main equipment manufacturer as a contract method for procuring components. The contract method not only affects the acquisition cost of the main equipment, but can also affect corporate behavior such as investment, export strategies and corporate performance such as profits and administrative costs of the DAPA. However, currently DAPA's contract method selection practices are not systematic and little research has been done on this issue. This paper analyzes the effect of each contract method on investment, export price, export production, export profit, etc. of the defense companies through a game theory model. From these results, policy implications were suggested for DAPA to establish the criteria to select a rational and efficient procurement method between collective contracts and separate contracts.

방산업체 원가부정행위에 따른 페널티 부과 적정성에 관한 연구

When defence corruption occurs in the acquisition process of defence weapon system, the government imposes strong penalties on the companies. In particular, in the event of cost fraud, the industry and some media argue that it is an excessive measure, as it imposes excessive penalties such as sanctions against unfair profits and additional fees, sanctions against unfair skilled workers, profit reduction, prohibition of payment of start-ups and intermediate payments, and cancellation of certification. This is because defence companies that are the only customers in the government may face bankruptcy or closure due to excessive penalties if some minor errors occur. Naturally, if cost fraud occurs, it is necessary to take countermeasures, but it is time to analyze and review for excessive measures. The purpose o f this s tudy is to make policy proposals that can adequately present the excessive penalty of the triple, despite the responsibility for the cost misconduct of defence companies. For the development and export promotion of the defence industry, the direction related to the support and fostering polices of defence companies was presented.

STIMULATION THE PROCESSES OF ENVIRONMENTAL PROTECTION IN THE MILITARY- INDUSTRIAL COMPLEX OF UKRAINE�

Topicality, aim and tasks. The purpose of the article is to develop theoretical and applied proposals that should justify the feasibility of systemic long-term measures to stimulate the processes of greening the military-industrial complex of Ukraine as one of the forms of its modernization in the context of European and world requirements defense industry and military formations. The urgency of the problem of stimulating the introduction of greening of the military-industrial complex is growing today due to the need for support of activities of domestic enterprises of the defense industry and military formations of Ukraine in hostilities in eastern Ukraine and annexation. Research results. The tools of the mechanism of ecologically conscious management of the components of the military-industrial complex of Ukraine in accordance with the main vectors of development of the defense sector in the field of environmental protection are considered. There is a well-founded difference in the tools for stimulating greening processes for different subjects of the military-industrial complex. A set of measures to increase resource conservation and minimize the negative environmental impact of military formations, defense companies and other military-industrial complex entities are considered. Conclusion. One of the vectors of modernization of the domestic military-industrial complex and competitiveness of Ukrainian weapons and military equipment on the world market is the introduction of environmentally friendly development of the defense sector, introduction of resource conservation technologies and use of renewable energy sources. Ways to implement environmental requirements through the appropriate environmental management tools at the level of individual components of the military-industrial complex, which creates new opportunities for the development of the domestic defense sector in accordance with European and world requirement, are proposed. Prospects for future research in the field of stimulating the greening of the military-industrial complex are associated with the formation of an appropriate effective system of environmental management in each component of the defense sector.

Military Service of the Cossacks in the Security System of the South of Russia (On the Example of Rostov Region)

Introduction. Modern Russian Cossacks, having undergone the process of revival and institutionalization, are now incorporated into the system of state and other services of the Russian Federation. Given the pre-revolutionary status of the Cossacks as a military class of the Russian Empire, Ministry of Defense of the Russian Federation, beginning from the 1990s, has a particular interest in attracting the descendants of the Cossacks and members of Cossack societies to military service. Methods. Through the institutional analysis, the study assesses the role of the Cossacks in military service and security in the South of Russia. Analysis. In order to incorporate the Cossacks into the system of military service in the Russian Federation, a number of normative legal acts have been adopted that allow the Cossacks to serve in Cossack units with traditional Cossack names, to use Cossack insignia on military uniforms. As part of the implementation of the Strategy of the state policy of the Russian Federation in relation to the Russian Cossacks until 2020, regional plans for its implementation, Cossack societies are actively involved in the preparation of pre-conscription youth, interact with military commissariats. Recently, pilot projects have been launched to create specialized Cossack territorial defense companies. At a high level, the participation of the Cossacks in ensuring public order during important international events has been evaluated: the XXII Winter Olympic Games in Sochi, the World Cup 2018. Results. The need to expand the participation of the Cossacks in the military service of the Russian Federation by increasing the number of territorial defense companies, opening Cossack cadet corps, forming the role of the Cossacks as a guarantor of stabilization of interethnic relations of the South of Russia.

A Study on the Development of Defense Industry in the Republic of Korea Based on Main Foreign Countries

본 논문에서는 현재의 국내 방위산업 실태와 미비점을 진단하고, 방위산업에 대한 주요국의 정책과 환경변화 분석을 통해 방위산업이 가지는 대내·외적 위협요소를 줄이면서 지속적인 경쟁력 향상을 위한 정책적 발전방안을 모색하였다. 본 연구의 범위는 미국, 영국, 프랑스, 이스라엘, 일본 등 세계 주요 선진국들을 대상으로 하였으며, 세계 방위산업의 패러다임 변화 및 대상국들의 방위산업정책 추진현황을 살펴봄으로써, 우리나라에 적용가능한 제도적, 정책적 발전방안을 도출하였다. 그 결과 본 논문에서는, 방위산업정책 수립 시 관련 산업과 연계한 정책입안 방안, 방산수출 관련 협조체계 구축방안, 미래 방위산업 핵심 분야 선정 및 집중 육성 방안, 방산업체 간 기술개발 및 공동 협력방안 등을 제안하였다.In this paper, we present the development of defense industry based on policy development of major foreign countries. We analyze domestic defense industry in terms of challenges, and present defense policy development of foreign countries including USA, UK, France, Israel, and Japan. In particular we study the paradigm of world defense policy and how they try to get their weapon systems. As a result, we propose the development of defense industry in terms of policy related to industry area, cooperation for world trades, defense core technology of future defense industry, and R&D of weapon systems between defense companies including cooperation each other.

The Professed Culture of the Business Organizations in the Defense Industry in Bulgaria. What Does it Look Like? And do they Need it?

Purpose – This article aims to outline and analyze the role, structure and dominating content of professed organizational culture among the companies in the defense industry in Bulgaria as conscious and the official expression of their leadership intentions within the contemporary business environment, uniquely justifying the existence of each entity. Design/methodology/approach – A qualitative study is conducted, based on a literature review of academic publications in the sphere of professed organizational culture. Furthermore, the websites of the target companies were carefully examined in order to outline the practical approach to presenting the unique official culture of defense business organizations. Findings – An elaborate set of cultural attributes to be found on the second level in Edgar Schein’s model of organizational culture is identified. Based on literature review, the intersection between official corporate culture expressions and defense sector is outlined. Important nuances in the development of Bulgarian defense, technological and industrial base are described, encompassing the transition period to market economy and democratic political system. A survey of professed culture attributes is conducted among the members of Bulgarian defense, technological and industrial base. It is concluded that these companies prefer disclosing their official cultures in a very succinct way to utilizing the potential power and impact of the most popular firm documents in this field as mission and vision or relying on small number of their simpler building elements. Recommendations to senior managers of the Bulgarian defense companies regarding smart and intensive use of official culture elements are given. Research limitations/implications – The financial data for the surveyed companies is not accessible. Originality/value – A snapshot of preferred professed culture attributes among the members of Bulgarian defense, technological and industrial base is composed, implying their leadership strategic intentions. The second level in Edgar Schein’s model of organizational culture is populated with a set of cultural attributes.

The Major Technology Distribution Analysis of Domestic Defense Companies in Naval Ships based on Patent Information Data

The Major Technology Distribution Analysis of Domestic Defense Companies in Naval Ships based on Patent Information Data

Avaliação do Nível de Maturidade da Indústria 4.0: O Caso de uma Empresa Estratégica de Defesa

Objetivo: Avaliar o nível de maturidade de uma Empresa Estratégica de Defesa (EED) sob a ótica dos conceitos da Indústria 4.0.Método: A pesquisa classifica-se em bibliográfica, qualitativa e descritiva, e utiliza-se do questionário desenvolvido pela Fundação IMPULS, empresa de consultoria alemã, traduzido e adaptado para este estudo, no caso da Indústria de Material Bélico do Brasil (IMBEL).Originalidade/Relevância: Um dos gaps no estudo da Indústria 4.0 no Brasil é a ausência de evidências empíricas sobre os impactos que as tecnologias decorrentes desse novo paradigma podem contribuir para o desempenho operacional das empresas. Diante dessa nova tendência, faz-se necessário analisar seus impactos nas empresas, de forma empírica, ao relacionar os construtos teóricos desenvolvidos e a realidade das empresas.Resultados: Os resultados revelam que a empresa analisada apresenta um nível de maturidade intermediário, categorizada como aprendiz em um modelo de maturidade da Indústria 4.0.Contribuições metodológicas: A pesquisa contribui com o desenvolvimento empírico de um modelo e fornece um instrumento de análise da maturidade da Indústria 4.0 que poderá ser utilizado em empresas de diferentes setores.Contribuições para a gestão: O questionário elaborado neste estudo (Apêndice), pode ser utilizado por outras Empresas Estratégicas de Defesa, além de outras empresas de manufatura de diferentes setores, para que possam avaliar o nível de maturidade da Indústria 4.0, com a finalidade de identificar as estratégias e o status de implementação desse novo modelo.

Консолидация и реструктуризация активов компаний ОПК

The article analyzes the key trends in consolidation and restructuring defense sector assets developed in the XXI century, i.e. the creation of vertically integrated structures in accordance with the decrees of the President of the Russian Federation; the inclusion of financially disadvantaged enterprises in concerns and state corporations, their subsequent financial recovery within the framework of integrated structures; the specifics of integration strategies of the leading defense industry holdings by the example of Rostec group, Almaz-Antey concern, USC group, and Roscosmos group. The paper gives the motives of the Russian defense companies for non-organic growth strategies and restructuring according to the state priorities. The article proposes the approaches to financial recovery of defense enterprises, given the preparation of profound amendments to the bankruptcy law; maintaining a favorable institutional climate in the M&A market for defense enterprises, etc. According to the authors, dominant leaders will continue to participate in the implementation of state programs that will require certain concentration of both efforts and capital as well as assets redistribution of a particular state Corporation.

Design and analysis of tooth abutment implant

Design and analysis of tooth abutment implant

Business Strategy and Overvaluation: Evidence from Korea

The purpose of this study is to test the effect of business strategy on valuation error. Business strategy includes managerial decision making and managerial tendency. In previous research, there is a negative relationship between business strategy and accounting quality. In this study, we try to confirm whether strategy tendencies affected valuation errors. In order to confirm empirically between business strategy and overvaluation, we use 8,117 firms that between 2006 and 2017 and listed in KSE and KOSDAQ. We calculated business strategy which is introduced by Bentley, Omer, and Sharp (2013). We also used the overvaluation method introduced in Rhodes-Kropf, Robinson, and Viswanathan (2005). The results show that the more the leading business strategy is, the greater the value error becomes. In the case of dividing into leading and defensive companies, the lead firms showed a significant positive correlation with the valuation errors, while the defensive firms showed the negative relationship with overvaluation. This study examined the business strategy and the overvaluation. we confirmed whether the management strategy deepens the evaluation error caused by the firm characteristics. The results are meaningful that we extended the study on the quality of financial reporting of leading strategic firms.

Let Women Take the Lead: Insights from the UK Defense Industry

In this paper, we discuss how gender diversity in the workplace is managed (or not) within a non-traditional environment, specifically a UK defense company, aiming to gain an understanding of the impact on female employees. Our study revealed that there are currently no female role models within the senior ranks; and few women had progressed into middle management. We position the study within debates around diversity and inclusion and human capacity development in the UK defense sector in general, and specifically the armed forces. We also show how issues of equality are addressed in diverse ways.

Пріоритети нової ідеології військово-технічного співробітництва України з іноземними державами

The article examines issues of the development of military-technical cooperation of Ukraine with foreign countries under the modern conditions, which determine the necessity of significant changes in the system of military-technical cooperation towards liberalization of the foreign economic activity that includes goods and services of military and dual use and concerns the entities of all forms of ownership. This will facilitate the creation of the necessary conditions for expanding Ukraine’s presence on the international arms markets and on the Ukrainian market of foreign defence companies attracting the latest defence technologies and investments to the defence industry. The article provides the rationale for the directions of military-technical cooperation development, the main priorities of which are: satisfaction of the needs of Ukrainian military formations by import, preservation of traditional arms markets and development of new ones, the use of military-technical cooperation to form allies from Western partners and eliminate Russia as a competitor. It is proposed to consolidate these priorities in a separate document, the Strategy of military-technical cooperation of Ukraine with foreign countries, which will be considered as a long-term, consistent, constructive and rational plan. The development of Ukraine’s military-technical cooperation with foreign countries will help to provide the Armed Forces of Ukraine with modern weapons, strengthen Ukraine’s position on new arms markets and increase foreign currency income.

International Procurement Developments in 2018: The United States in International Procurement -- Understanding a Pause in the Trump Administration's Protectionism

As the Trump administration came of age in 2018, two distinct developments marked the United States’ involvement in international procurement. First, to the surprise of many, and despite a wave of other U.S. protectionist measures aimed at strategic sectors such as steel and aluminum, the Trump administration did not press forward aggressively on its promised “Buy American” initiatives in procurement. Second, the Trump administration remained largely silent on an arguably protectionist initiative in the European Union, the European Defense Fund, which gained ground in one of the United States’ most important defense markets abroad. To address these two aspects of U.S. policy, this piece proceeds in five parts. Part I reviews the Trump administration’s failure to move forward on the protectionist measures President Trump called for in the early days of his administration. In Part II, the piece discusses one of the possible causes for the Trump administration’s reluctance to press for protectionism: a significant setback in the NAFTA/USMCA negotiations, which may narrow the administration’s options going forward. Part III reviews other potential causes for the Trump administration’s shift away from protectionism in procurement, including competing strategic concerns, new U.S. data on the relatively small threat posed by procurement from abroad, and data from Europe which confirm that U.S. exporters have much to lose were the European Union to take a retaliatory stance in European procurement markets. Finally, Part IV reviews the European Defense Fund, an initiative which surged forward in 2018 and which threatens to exclude U.S. defense companies from important opportunities in Europe, despite reciprocal defense procurement agreements which guarantee open markets in defense and -- again surprisingly -- with no loud objections from the Trump administration. Part V offers concluding remarks and a potential way forward.

Applying Feature‐Based Systems and Software Product Line Engineering in Unclassified and Classified Environments

AbstractGlobal aerospace and defense companies are reaping the benefits of feature‐based systems and software product line engineering and management (FBPLE) in those situations where production must seamlessly span unclassified and classified environments (Gregg et al. 2014) (Gregg et al. 2015) (Krueger et al. 2014) (Lanman et al. 2011). These benefits include leveraging company talent while awaiting access to classified material; leveraging employees who are members of other sovereign states; and optimizing system production and maintenance for export / import. In this whitepaper we present the architectural design and accompanying business processes for a PLE factory and its artifacts that comprise unclassified and classified digital assets1. These digital assets are used in automated generation of unclassified and classified product instances. All production activities occur within a single logical enterprise spanning multiple information systems comprising multiple security zones2.