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Impact of Defence Offsets On The Companies of The Participating Industry - A Case Study Based Examination

Author

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  • Heinz Kirchwehm

    (Faculty of Business Administration Turiba University 68 Graudu Street, Riga, LV-1058 Latvia, Latvia)

Abstract

The knowledge about the connection between purchases of equipment and offset obligations is almost unknown in many areas of the economy. The requests for this offsets occurs primarily in the area of arms imports and covers the full range of benefits that firms provide to the buying governments as inducements for the purchase of military equipment. For those companies which participate for the first time in such offset programs, is it very limited to inform on the effects of offsets. So it is necessary to provide information about the impact of offset for the companies of the participating industry. This examination was triggered through an overall research project on the impact of offsets on the business processes of SMEs. During the necessary Pre-Study for this research project first indications appear that the impact of offset is often not known by the affected companies. The purpose of this paper is to analyze the generic impact of offset for the affected companies with the help of a case study examination. The data for this examination were obtained from secondary sources. After data collection, an analysis was performed on the chosen case studies: Switzerland and Malaysia. This analyzes shows that offset has a wide range impact for the companies.

Suggested Citation

  • Heinz Kirchwehm, 2014. "Impact of Defence Offsets On The Companies of The Participating Industry - A Case Study Based Examination," International Journal of Business Research and Management (IJBRM), Computer Science Journals (CSC Journals), vol. 5(4), pages 52-63, August.
    • Handle: RePEc:aml:intbrm:v:5:y:2014:i:4:p:52-63
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    More about this item

    Keywords

    Offset; Participating Companies; Case Study; Offset-affected Business Areas.;
    All these keywords.

    JEL classification:

    • M0 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - General

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