Civil-military technology proximity and disclosure balance for the civilian Firm's Performance: A comparative study

This study examines the civil-military technology proximity-disclosure (PD) fit and its impact on the performance of civilian firms, with a comparative focus on China and the United States. In light of the growing global prominence of civil-military links, this research addresses the strategic tensions between technological proximity (access to military technologies) and technological disclosure (transparency to external stakeholders) in influencing firm outcomes. Leveraging data from 2651 civilian firms across 82 countries, the analysis reveals distinct patterns between Chinese and American firms. Chinese firms, characterised by high proximity and lower disclosure, demonstrate superior performance when they maintain proximity to military technologies and increase their disclosure. Conversely, American firms perform better when they enhance proximity to military technologies while maintaining high disclosure levels. These findings suggest that national contexts significantly shape the optimal PD fit for firm performance, challenging universal approaches to civil-military collaboration in a single universal model. The study contributes to institutional theory by showing how different logics of conformance and legitimacy affect technological integration and firm outcomes in varied political and economic environments. One side of the logic and legitimacy is conformance to the military imperatives, and the other side is conformance to the market imperatives. Policymakers and firms can leverage these insights to craft context-specific strategies for navigating the complexities of civil-military alliances.