+7 925 966 4690, 9am6pm (GMT+3), Monday – Friday
ИД «Финансы и кредит»

JOURNALS

  

FOR AUTHORS

  

SUBSCRIBE

    
Finance and Credit
 

The military-industrial complex restructuring

Vol. 22, Iss. 47, DECEMBER 2016

Received: 21 September 2016

Received in revised form: 11 November 2016

Accepted: 1 December 2016

Available online: 24 December 2016

Subject Heading: SCHOLAR DISPUTE

JEL Classification: G34, L19, L93, O33, O57

Pages: 47-62

Sobolev L.B. Moscow Aviation Institute, Moscow, Russian Federation
sobolevLB@yandex.ru

Subject The article considers enhancement of economic efficiency of Russian arms manufacturers through using the business models of global leaders and their vying strategies.
Objectives The aim of the study is to compare restructuring methods of leading Western and Russian companies engaged in development and manufacture of weapons and military equipment.
Methods The study rests on a comparative analysis of Western and Russian leading arms manufacturers and their restructuring methods under instability of the countries' military budgets. The analysis is based on the annual rating data of world arms manufacturers, presented by the Stockholm International Peace Research Institute (SIPRI), and publications in public sources.
Results The analysis shows that Russian companies operating in the military-industrial complex make only first steps towards creation of a globally competitive organization. Subsequent steps should be a segmentation of companies based on product and/or region (for cost saving), and reduction of their dependency on Defense Procurement through creation of robust civil segments (electronics, oil and gas and power equipment, etc.).
Conclusions and Relevance Under fierce competition in the global weapons and military equipment market, it is possible to create alternative business structures of corporations operating in the Russian military-industrial complex (using the experience of Joint-Stock Financial Corporation Sistema), enhance cooperation with companies of fuel and energy complex, develop internal competition in the country.

Keywords: military- industrial complex, restructuring, conversion, business segment, diversification

References:

  1. Ershov M.V., Tatuzov V.Yu., Tanasova A.S. [The Federal Budget of the RF for 2015–2017: To what extent is the optimism justified?]. Analiticheskii bankovskii zhurnal = Analytical Banking Magazine, 2014, no. 12, pp. 44–47. (In Russ.)
  2. Vinslav Yu. [Conversion of domestic military-industrial complex: Fragments of a retrograde analysis and some important conclusions]. Rossiiskii ekonomicheskii zhurnal = Russian Economics Journal, 2006, no. 3, pp. 42–54. (In Russ.)
  3. Fadeev V.V. [We have shown to everybody how conversion should not be done]. Elektronika: nauka, tekhnologiya, biznes = Electronics: Science, Technology, Business, 2001, no. 4, pp. 5–7. (In Russ.)
  4. Arakelov E. [Problems of conversion in the U.S. military industrial complex]. Zarubezhnoe voennoe obozrenie = Foreign Military Review, 1990, no. 1. (In Russ.)
  5. Poyarkov A.A. [Reforming the U.S. military economy]. Voprosy ekonomicheskikh nauk = Issues of Economics, 2007, no. 4, pp. 113–117. (In Russ.)
  6. Chabanov V.A. [The NASA program for ecologically safe aircraft manufacturing]. Aviatsionnye sistemy = Aircraft Systems, 2012, no. 3, pp. 36–38. (In Russ.)
  7. Fedorovich V.A., Muravnik V.B., Bochkarev O.I. SShA: voennaya ekonomika (organizatsiya i upravlenie) [The USA: Military economy (organization and management]. Moscow, Mezhdnarodnye otnosheniya Publ., 2013, 38 p.
  8. The SIPRI Top 100 Arms-Producing and Military Services Companies, 2014. Available at: Link.
  9. [The best companies in the world of military electronics]. Vozdushno-kosmicheskaya oborona, 2001, no. 1. (In Russ.) Available at: Link-.
  10. Belikov I.V. [Russian companies: choosing a development strategy]. Upravlenie kompaniei = Company Management, 2003, no. 12, pp. 24–31. (In Russ.)
  11. Sinel'nikov-Murylev S., Drobyshevskii S., Kazakova M. [Decomposition of Russian GDP growth rates in 1999–2014]. Ekonomicheskaya politika = Economic Policy, 2014, no. 5, pp. 7–37. (In Russ.)
  12. Tashtamirov M.R. [Country's militarization as a factor of economic development]. Problemy sovremennoi nauki i obrazovaniya = Problems of Modern Science and Education, 2016, no. 9, pp. 36–40. (In Russ.)
  13. Pimenov V.V. [The State corporation as a tool of industrial policy implementation in the military-industrial complex]. Menedzhment i biznes-administrirovanie = Management and Business-Administration, 2008, no. 4, pp. 56–65. (In Russ.)
  14. Druker P. Zadachi menedzhmenta v XXI veke [Management Challenges for 21st Century]. Moscow, Vil'yams Publ., 2007, 272 p.
  15. Proleiko V.M. [About the importance of electronics: A military aspect]. Elektronika: nauka, tekhnologiya, biznes = Electronics: Science, Technology, Business, 2003, no. 4, pp. 60–65. (In Russ.)
  16. Bat'kovskii A.M, Bat'kovskii M.A. [Developing the contract system in the military-industrial complex]. Integratsiya nauki, obshchestva, proizvodstva i promyshlennosti: Sbornik statei Mezhdunarodnoi nauchno-prakticheskoi konferentsii [Proc. Int. Sci. Conf. Integration of Science, Society, Manufacture and Industry]. Ufa, Aeterna Publ., 2016, pp. 32–35.
  17. Biryukov A.V. [A cluster policy as a factor of enhancing the competitiveness of enterprises of defense sectors]. Mikroekonomika = Microeconomics, 2009, no. 5, pp. 70–75. (In Russ.)
  18. Zavilov I.M. [AO United Engine Corporation as an example of creating a growth-oriented joint stock company of the Russian military-industrial complex]. Rossiiskoe predprinimatel'stvo = Russian Journal of Entrepreneurship, 2016, vol. 17, no. 11, pp. 1335–1342. (In Russ.)
  19. Zimenkov P.I. [Condition and prospects for American arms trade]. Rossiya i Amerika v XXI veke, 2015, no. 3, pp. 9–10. (In Russ.) Available at: Link.
  20. Kostioglo V. [Arms export of in the foreign trade activities of the Russian Federation]. Aktual'nye voprosy innovatsionnoi ekonomiki = Topical Issues of Innovative Economy, 2015, no. 9, pp. 97–102. (In Russ.)

View all articles of issue

 

ISSN 2311-8709 (Online)
ISSN 2071-4688 (Print)

Journal current issue

Vol. 30, Iss. 10
October 2024

Archive