This paper examines the prevailing model by which the interplay between defence establishments and defence industries - the military-industrial complex - has been understood, focusing primarily on the defence industrial base. It argues that given global change drivers such as the end of the Cold War and the concomitant reduction in the geostrategic threat level, as well as defence globalization, post-industrialism and the revolution in military affairs (RMA), the old model has ceased to have utility for both researchers and policymakers. Instead, this paper suggest an approach that goes beyond conventional economic analyses and draws on organization theory to develop a dynamic model that better reflects the current realities in defence industrial sector. This paper articulates what a genenaral systems conception of the defence industrial system might consist in, and highlights its pontential in informing the defence industrial policy process as well as agenda for future research.