Identification of Critical Factors based on Innovation at the Private Defense Enterprises for Naval Weaponry Improvement

Abstract

Private enterprises play a strategic role in the national defense industry, particularly in the development of naval armaments. The purpose of this study is to identify critical innovation-based factors in the private defense enterprises in the improvement of naval weaponry. For analysis, the theories of innovation and private enterprises as well as qualitative methods were used in the research. In addition, thematic analysis method was used which was supported by QSR NVivo 11. Twelve experts were included in supporting the research with eight domestic defense industries that have been playing an important role in the development of national armament. There are three main attributes in the defense industry's innovation-based critical factors namely Technological Innovation, Operational Innovation, and Strategic Innovation. Technological innovation consists of four subsections, namely Stealth Technology, Advanced Navigation Systems, Integration of automated Weapon Systems, and Advanced Composite Materials. Operational Innovation consists of four subs namely Operational Effectiveness, Reliability and Durability, Accuracy and Precision, and Production Capacity Enhancement. Strategical Innovation consists of four subs namely Innovation and Technology Development, Strategic Partnerships, Competitiveness Enhancement, and Local Economic Strengthening. These findings show that technological innovation conducted by private enterprises has a significant positive impact on Indonesia's maritime defense capabilities