Defence sector procurement and supply chain relationships

The central aim of this paper is to link the competitive performance of small, high technology defence firms to their ability to adapt to changes in the procurement process. The paper draws upon an extensive research study focused on small high technology defence firms in the UK. Firms in the sample range from 5 to 200 employees, and £50,000 to £10 million sales turnover. The empirical analysis of the ability to create and sustain competitive advantages focuses on strategic determinants, and those inter-organisational variables that influence the performance of small firms in tendering for defence sub-contracts. The theoretical underpinnings of the study are based on Porter’s strategic management framework which suggests a close relationship between industry structure, strategy and performance. An organisation’s performance is measured by the percentage success rate of tendering for defence sub-contract work for the period 1995 through to mid-1996.