Strategic decision making and competetive strategy in defense industry

This thesis examines strategic decision-making and competitive strategies within the defense industry through theoretical frameworks, and develops a strategic approach accordingly. Currently, the defense industry has emerged as a critical sector from both economic and geopolitical perspectives, characterized by unique dynamics and fluctuating conditions inherent in a complex competitive environment. The necessity of addressing strategization processes with a risk-oriented and holistic perspective highlights a significant gap in the literature concerning theoretically grounded approaches enabling organizations to achieve competitive advantage without becoming stuck in the middle of conflicting strategic choices under dynamic conditions. To fill this gap, this study investigates the dynamics of the defense industry within relevant theoretical and practical frameworks, employing a qualitative analysis to explore competitive strategies through a strategic approach tailored to the Turkish Defense Industry. In the study, data obtained from a 21-question set answered by 40 professionals working in large-scale institutional firms operating within the Turkish Defense Industry, along with an interview conducted with a government institution, were analyzed using thematic analysis through a technique based on Natural Language Processing and Multi-Agent Systems (NLP-MAS). The key finding of the study shows the importance of developing agile and competitive strategies integrated into the ecosystem to gain a competitive advantage. In this context, the Agile Ecosystem Integration Strategy proposed in this thesis contributes to the literature as a holistic approach aimed at providing a flexible competitive advantage in the context of the defense industry; one that prioritizes strategic flexibility and contextual alignment, transforms resource dependencies into advantages while emphasizing collaborative value creation, supports the institutionalization of dynamic capabilities, and simultaneously strengthens risk-oriented strategic governance.