Analysis of Financing Mechanisms and Identification of the Most Effective Mechanisms in the Military Sector

Document Type : Original Article

Authors

1 Ph.D., Department of Strategic Defense Sciences, Faculty of National Defense, Supreme National Defense University, Tehran, Iran.

2 Ph.D., Department of Information Technology, Malek Malek Ashtar University of Technology , Iran.

3 M.A., Department of Defense Science Management, AJA Command and Staff University, Tehran, Iran.

Abstract

In a complex and dynamic security environment, and given the need to enhance national military capabilities, selecting and implementing effective financing mechanisms in military organizations is of strategic importance. This study aims to analyze financing mechanisms and identify the most effective mechanisms in the military sector. Drawing on the theoretical literature, comparative studies, and expert opinions, two main categories of financing mechanisms were initially identified: budgetary financing, including government budget allocations and loans, and extra-budgetary financing, including sustainable revenues generated from assets and technologies, privatization, domestic and international joint projects, capital market instruments, and public participation. Subsequently, the indicators associated with each component were developed through a researcher-developed questionnaire and administered to 55 experts, specialists, and managers with relevant knowledge and experience in military financing. The collected data were analyzed using descriptive statistics, including the mean and standard deviation, a one-sample t-test, the Content Validity Index (CVI), factor analysis, and factor loadings.
The findings indicate that, with the exception of public participation, all identified components obtained relatively high mean scores and demonstrated statistical significance and strong factor loadings. Most factor loadings exceeded 0.90, while the reported significance levels for all indicators were 0.00. These findings indicate that, from the perspective of the surveyed experts and specialists, the identified components play a significant role in financing military organizations. Furthermore, the findings suggest that the use of extra-budgetary financing mechanisms, particularly joint investment, privatization, and the utilization of capital market capacities, can reduce reliance on conventional budgetary sources and contribute to the long-term financial sustainability and operational efficiency of military organizations.

Keywords

References

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اقتصاد دفاع و توسعه پایدار
Volume 11, Issue 41
September 2026
Pages 9-31

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