STRATEGIC RESPONSES TO DEFENSE SECTOR RESTRUCTURING - AN ANALYSIS OF LANCASHIRE-BASED COMPANIES

This paper investigates the factors affecting the likelihood of Lancas hire-based companies involved in defence production pursuing strategic responses to defence sector restructuring. Data covering 100 Lancashi re-based companies form the Lancashire Defence Survey database, which is analysed. Results of the data analysis are of interest to organizat ions involved in local economic development policy making. They sugges t that the effects of restructuring are most profound in large core de fence companies most directly involved in defence production. Other ef fects are passed on to companies that carry out subcontracting, but th ere is less evidence of strategies being implemented in response to st ructural change among these companies. Company size, product type and degree of defence-dependency are uncovered as significant factors infl uencing whether a strategic response is instigated.