DEFENCE SECTOR PROCUREMENT AND THE SMALL, MILITARY‐INDUSTRIAL FIRM

The proper matching of industry structure to strategy is expected to have a positive impact upon organisational performance. This relationship has not been fully examined in the defence industry. The central aim of this paper is to link the competitive performance of small, high technology defence firms to their ability to adapt to industry structure changes. With this in mind a study was conducted to extend Porter's (1980) framework of the strategic management of industry structural change. The study draws upon the experiences of 40 small, high technology defence firms in the UK. Firms in the sample range from 5 to 200 employees, and £50,000 to £10m sales turnover. The study broadens the findings of exploratory research undertaken in the buying department of two large defence firms. A questionnaire was designed to identify macro level phenomena and detail hypotheses generated by the case studies. The empirical analysis of the creation and sustaining of competitive advantages will focus on strategic determinants, and inter‐organisational variables that influence the performance of small firms in tendering for defence sub‐contracts.