Graduation Year

2025

Date of Submission

12-2024

Document Type

Campus Only Senior Thesis

Degree Name

Bachelor of Arts

Reader 1

Eric Hughson

Abstract

This study examines how incumbent firms use corporate lobbying as a strategic response to the competitive threats posed by firms introducing transformative technologies or business models. While existing research extensively explores the determinants, motivations, and financial advantages of corporate lobbying, as well as various incumbent responses to market disruption, it has not yet addressed the use of lobbying against technological disruptors. Accordingly, there is also no research on the effects of such lobbying on the disruptors. To fill this gap, I analyze a novel dataset comprising 390 industry-year observations from 1998 to 2023. The findings reveal that incumbent lobbying expenditures increase significantly as technological disruptors take greater market share. Furthermore, I evaluate the financial impacts of lobbying on disruptors, focusing on revenue growth, gross profit margin, EBITDA margin, and return on assets. The analysis indicates that increased lobbying efforts by incumbents are associated with measurable declines in disruptor revenue growth and return on assets, while impacts on profit margins remain inconclusive.

This thesis is restricted to the Claremont Colleges current faculty, students, and staff.

Share

COinS