Research Note: Terrorist Groups as Business Firms: A New Typological Framework

Existing typological frameworks do not adequately categorize terrorist groups by their operational characteristics. We propose a new framework which compares terrorist groups to business firms. In our framework, terrorist groups are mapped on two axes: centralization of resources and centralization of operations. We separate terrorist groups into four typologies echoing familiar business arrangements: Hierarchy, Venture Capital, Franchise, and Brand. Responses to each typology are briefly sketched out. We conclude by analyzing the changes in Al Qaeda over the last two decades in the context of our framework. We close by proposing appropriate policy responses to combat Al Qaeda in light of its current Brand typology.