Private Enterprises To Participate In The Stakeholders In The Defense Industry Consolidation Game Analysis

Industry integration is paid more and more attention whether theoretically or practically. There are lots of problems in the defense industry in China, so the integration is needed to optimize the resource collocation and enhance the industrial competitiveness. During the process of integration, defense industry is gradually open to privately-owned enterprises. Though many privately-owned enterprises have the qualifications and policies support them, there are still a lot of obstacles when they enter the defense industry integration. From the angle of the stakeholders, by dint of game theory, this article analyses the hindrance for privately-owned enterprises to participate in the defense industry integration.Firstly, the meaning of this thesis is explained. After reviewing the relative study, the questions needed to solve and the structure of the article are put forward. Secondly, basing on the status quo of defense industry in China, the context and the obstacles for privately-owned enterprises' participation in the defense industry integration are expounded. Thirdly, the stakeholders during privately-owned enterprises joining in the defense industry integration are defined. They include: military enterprises, privately-owned enterprises, war industry group and government. Fourthly, the game of these stakeholders is analysed with models. After the game analysis of rent-seeking for the admittance to defense industry of privately-owned enterprises, we concluded that it is necessary to improve the martial market admittance system. Through the game analysis of the merger between privately-owned enterprises and military enterprises, we find that the obstacles for privately-owned enterprises are the insider control of state-owned military enterprises and the control rights loss which is not compensatory and intervention of war industry group. So on the one hand, it needs to improve the modern corporate system, on the other hand, to make the orientation of war industry group clearly and optimize the performance evaluation system. Finally, in order to facilitate privately-owned enterprises to participate in the defense industry integration, some ideas are brought forward to coordinate the stakeholders.