IDEAS home Printed from https://ideas.repec.org/a/ids/ijpman/v18y2023i3p321-339.html
   My bibliography  Save this article

Transaction costs and architectural complexity in no-capability defence acquisition

Author

Listed:
  • Alexandre Verlaine

Abstract

The paper addresses the research gap between big and small military powers and investigates the challenges in defence acquisition through the perspective of a no-capability NATO nation. First, the author discusses different contractual approaches in no-capability defence acquisition using transaction cost economics and identifies three important transaction cost factors: seconding liaison officers, aligning budget calendars and agreeing on key user requirements. Second, the author inquires the systemic complexity that lies at the heart of modern weapon systems and shapes defence contracts. Drawing on architectural innovation, the analysis demonstrates that small/no-capability NATO nations have a structural disadvantage in relation to developing/acquiring advanced weapon systems. Finally, the author examines the "dual-use development strategy" as a vehicle for overcoming the structural no-capability disadvantage. Two contrasting case studies on Luxembourg and Estonia illustrate the importance of the competent and demanding military customer and the need for further research on the profile of small/no-capability NATO nations.

Suggested Citation

  • Alexandre Verlaine, 2023. "Transaction costs and architectural complexity in no-capability defence acquisition," International Journal of Procurement Management, Inderscience Enterprises Ltd, vol. 18(3), pages 321-339.
    • Handle: RePEc:ids:ijpman:v:18:y:2023:i:3:p:321-339
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=134193
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijpman:v:18:y:2023:i:3:p:321-339. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=255 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.