Abstract
National defense management, based on inclusive growth drivers, is a multiple-criteria decision-making (MCDM) problem, which is affected by several conflicting factors like socio-economic dimension and security expenditure. The defense expenditure in its pursuit of closer ties with the regional development has sought to turn structural weaknesses into added value and has attempted to develop a distinctive, nonthreatening profile building around the lack of a political baggage and geopolitical ambitions. In this chapter, SWOT (strengths, weaknesses, opportunities, and threats)-based fuzzy AHP-TOPSIS model is proposed and is utilized to determine criteria and alternatives. Moreover, fuzzy set theory is employed to deal with the vagueness of human thought. Then, SWOT yardsticks integrated with AHP-TOPSIS calculate the performances of the alternative insights, based on the above-mentioned criteria. The result shows that the most important task of defense authority is to tackle the threats of nation while the “weakness-threat” is the alternative of priority to get the ideal state of defense management.
TopInclusive Defence Growth Drivers
The implementation of domestic defense resources investment policy aimed at improving defense industrial base technology and self-reinforcing cycle of economic prosperity. The whole society benefits by organizing defense resources of private and public sectors though which government can achieve defense autonomy, improve national defense technology, boost the economy, and create jobs. DeGrasse (1993) has been showed that defense expenditure provides and creates employment opportunities, increases workers’ buying power, introduces greater demand, and boosts economic growth. Benoit (1973) argued that increasing military expenditure can promote economic growth and improve the quality of human capital through education. Particularly in underdeveloped countries, military industry fosters technological intensity in other industries such as aerospace industry. Yakovlev (2007) claimed that an increase in military expenditure may lead to an expansion of new technology which creates spillover for the civilian segment of the economy.
Key Terms in this Chapter
MCDM: Multiple-criteria decision making (MCDM) or multiple-criteria decision analysis (MCDA) is a sub-discipline of operations research that explicitly evaluates multiple conflicting criteria in decision making (both in daily life and in settings such as business, government, and medicine).
Fuzzy Set Theory: In mathematics, fuzzy sets are sets whose elements have degrees of membership. Fuzzy sets were introduced by Lotfi A. Zadeh in 1965 as an extension of the classical notion of set. The fuzzy set theory can be used in a wide range of domains in which information is incomplete or imprecise, such as bioinformatics, economics, logistics, supply chain management, etc.
TOPSIS: Technique for order of preference by similarity to ideal solution (TOPSIS) is a multi-criteria decision analysis method, which was originally developed by Hwang and Yoon in 1981 with further developments by Yoon in 1987, and Hwang, Lai and Liu in 1993. This provides a more realistic form of modelling than non-compensatory methods, which include or exclude alternative solutions based on hard cut-offs.
AHP: The analytic hierarchy process (HP) is a structured technique for organizing and analyzing complex decisions, based on mathematics and psychology. It was developed by Thomas L. Saaty in the 1970s and has been extensively studied and refined since then.
SWOT Analysis: A study undertaken by an organization to identify its internal strengths and weaknesses, as well as its external opportunities and threats. A SWOT analysis can be carried out for a company, product, place, industry, or person.