Partnerships and alliances strategies in the medium-sized defense industry: Surviving industry turmoil

Sought in the qualitative comparative case study was an understanding of the strategies followed and the benefits gained by medium-sized defense contractors when they established a successful partnership or alliance, and to develop a descriptive model addressing partnership and alliance strategies that provided a competitive advantage. Defense contractors face an operating environment with a single powerful customer, the United States government. The United States defense industrial base consists of giant corporations providing unique products and small firms receiving competitive advantage through favorable federal acquisition regulations placing the medium-sized defense contractor in an untenable situation. Medium-sized defense firms are part of the economic engine that drives the United States economy making their survival critical. Revealed in the findings were key themes focused on pre-partnership considerations, actions to establish a partnership, and management measures indicative of a successful partnership. The developed descriptive model may provide leaders of medium-sized defense firms with a framework to complement their understanding of their operating environment, analyze potential effects, and integrate findings within their firms' strategic plans. Finally, the results may contribute to future strategic partnership and alliance model development and to the development of a comprehensive business model for defense industry firms seeking sustainable competitive advantage.