The research, published in the Journal of World Business, shows many multinational firms now build competitive advantage through structured relationships with military institutions, from hiring veterans and using security contractors to accessing defence-funded innovations and protecting markets. Rather than being rare or controversial, this behaviour is becoming routine in unstable global markets.

Researchers examined how companies operate across geopolitically risky regions and identified a pattern called corporate military activity. Instead of lobbying politicians for favourable regulations or funding social initiatives for reputation building, firms actively engage with the military ecosystem to obtain protection, talent, technology and contracts.

To understand this, the team analysed previous studies and corporate practices across sectors such as energy, finance and logistics, compared them with established business strategy theories and mapped how firms interact with defence bodies, private security companies and military personnel. They then built a framework showing how these relationships translate into profit, resilience and market access.

Professor Tazeeb Rajwani, lead author of the study and Professor of International Business and Strategy at the University of Surrey said:

"People like to imagine business and war sit in separate worlds. They do not. Firms rely on security, technology and expertise that often originate in defence systems. The uncomfortable truth is that in uncertain regions, companies that understand the military landscape survive and grow while others struggle."

The analysis highlights four main advantages. First, military links provide protection in volatile regions allowing firms to operate where competitors cannot. Second, defence research produces technologies and innovations that later become everyday tools such as GPS and advanced materials. Third, leaders with military experience improve crisis decision making and organisational discipline. Finally, defence procurement and logistics contracts create stable revenue streams.

However, the study warns this trend brings risks including ethical concerns, over-dependence on government contracts and reputational damage if companies appear aligned with conflict actors.

Professor Rajwani continued:

“Firms must adopt clear governance rules, transparency around security partnerships and balanced strategies combining civilian and defence markets so commercial decisions do not become hostage to geopolitical shifts.”

ENDS