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.
Recommended Citation
Rogers, Caden, "Innovation vs Legislation: The Impact of Incumbent Lobbying on Technological Disruptors" (2025). CMC Senior Theses. 3743.
https://scholarship.claremont.edu/cmc_theses/3743
This thesis is restricted to the Claremont Colleges current faculty, students, and staff.