The capabilty contribution of main defense industry firms to their suppliers: a dynamic capabilities view

Aslan, Murat
Firm capability assessment has been given importance and already studied in some industries and it seems it will be increasing in the future. This thesis investigates the capability assessment issue for Turkish Defense Industry. Defense industry is both a vertically integrated and high technology based industry, so firms are highly dependent on each other for their individual performance. However, the extent of this dependence and the specific effects of main defense industry firms on the remaining firms in supply chain are not yet fully examined. To fill the gap, this study aims to examine the relationships between main defense industry firms and their suppliers by using the dynamic capabilities view of firm. This is because dynamic capabilities help to shed light on intangible capabilities that form the base for the competitive advantage of firms as widely discussed in literature. The novelty of this thesis is being the first known study that examines contribution of main defense industry firms on their suppliers based on capability contribution perspective. v First of all, our thesis just confronts with the developments of the Turkish Defense Industry with its supplier capability focus. As the information collection methodology, we have utilized interview method with selected 45 firms. Besides supplier firms, we conduct semi-structured interviews with other actors of the sector such as; SSM, SASAD, Defense Industry Clusters, KOSGEB and main defense industry firms. Our findings from supplier interviews indicate that working in defense industry brings apparent dynamic capability contribution for subcontractor firms. According to results, working with defense industry causes increase in all; absorptive capability, innovative capability and adaptive capability parameters and it is concluded that working with defense industry contribute to dynamic capability and competitiveness of the defense supplier firms. Apart from this based on interview and semi-structured interview findings we have come up with three policy recommendations; Regulating SME Supporting Structure, Promoting the Cluster Structure for Defense Industry and Promoting R&D Focus for Defense Industry. We expect applying these policies would increase this capability contribution.
Citation Formats
M. Aslan, “The capabilty contribution of main defense industry firms to their suppliers: a dynamic capabilities view,” Ph.D. - Doctoral Program, Middle East Technical University, 2018.