Analysis of the Significance of Factors for Enhancing Export Competitiveness of Korea’s Defense Industry Using the AHP Technique

Purpose - The purpose of this study is to identify the direction towards which the Korean defense industry should move forward to achieve export competitiveness. Design/methodology/approach - To meet this purpose, the specific factors that must be enhanced in order to increase export competitiveness of the players in the Korean defense industry were identified through a review of previous studies. The identified items were rearranged according to the standard of Porter’s Diamond Model. In order to analyze the significance of the selected items, twenty-one defense industry experts including industry employees and government officials were surveyed according to the AHP technique. Findings - The result is as follows. First, the significance of the conditions which are larger categories appeared to be in the order of factor > strategy, structure and rivalry > demand > related and supporting industries. Such results show that the element that has the utmost importance in the defense industry is the competitiveness of the industry itself. Secondly, from a comprehensive perspective, R&D infrastructure and R&D investment were found to have the most significance. Thirdly, from an export-oriented perspective, the significance of items such as investment in export-specialized personnel, regional strategy development must be given full consideration. Research implications or Originality - This study is simultaneously limited by the fact that it is focused only on an analysis of the significance of export competitiveness based on the items presented in previous related studies. The methodology employed can be said to be valid in the sense that it reviewed the analysis and insights of experts in its efforts to present recommendations for the defense industry.