Electronic Thesis and Dissertation Repository

Thesis Format

Integrated Article

Degree

Doctor of Philosophy

Program

Business

Supervisor

Holburn, Guy L.F.

Abstract

This dissertation explores the strategic interactions between firms and governments through lobbying. It examines how firms’ internal resources and capabilities and their competitive market dynamics influence their lobbying strategy.

Essay 1 investigates how local stakeholder reactions to a firm's externalities shape its lobbying strategy. Using data on Airbnb’s geographical distribution and lobbying activities in Toronto, this study finds an inverted-U relationship between the local size of Airbnb’s rent chain and its lobbying intensity. Additionally, Airbnb was less likely to lobby in districts with a higher presence of hotels, which were established competitors with entrenched regulatory support. Conversely, opposition groups, such as activists and unions, were more likely to lobby in districts with a strong presence of both Airbnb and hotels.

Essay 2 examines how pre-existing relationships with senior public officials affect firms' lobbying access to these officials. This study argues that these relationships allow firms to understand policymakers' preferences and decision-making processes, build reputations for providing reliable information, and adapt to shifts in the political hierarchy. Analyzing contact-level lobbying data from the Canadian federal government’s Department of Industry and its successor, this study shows that firms with prior interactions with policymakers were more likely to maintain frequent contact after their promotion to senior minister and deputy minister positions.

Essay 3 focuses on the Government Relations (GR) industry’s role in lobbying. It analyzes the dynamics of GR firms in Canada from 2008 to 2023 and highlights changes in market share dominance after the 2015 federal election when the Liberal government took office. To understand these shifts, this essay presents two case studies. The first case study examines the telecommunications industry and finds that GR firms representing clients aligned with the new government's policy agenda experienced growth. The second study compares four GR firms that either grew or declined in their standing before and after the 2015 election. It finds that firms with partners who had prior experience with the Liberal Party or government, and those able to adapt to the new policy regime increased their lobbying activity to a greater extent. In contrast, firms with previous ties to the Conservative Party and those with large, inflexible operations struggled to realign and grow.

Summary for Lay Audience

This dissertation looks at how corporations interact with government officials to influence policy through lobbying. It examines how a company’s internal strengths and market conditions influence its lobbying strategies.

Essay 1 focuses on the lobbying activity by Airbnb and community activists and unions in Toronto. It finds that Airbnb lobbied more in areas where it had a moderate presence but lobbied less in areas where it had a very large or minimal presence, as well as in areas with more hotels. Airbnb was more likely to face local opposition in areas in which it had a strong presence. Furthermore, the hotel industry already had strong connections with policymakers, making lobbying less effective for Airbnb in areas in which it faced market competition. On the other hand, activist groups and unions concentrated their political activity in areas in which Airbnb faced the most stakeholder resistance and lobbied more in areas where both Airbnb and hotels were heavily present.

Essay 2 explores how existing relationships with government officials help organizations maintain access to these officials after they are promoted to senior positions. These relationships help organizations understand the officials' preferences and decision-making processes and position them as reliable sources of information that could help policymakers enact new policies. By studying lobbying communications in the Canadian federal government, this study shows that organizations that had previous contact with officials before their promotion were more likely to continue meeting with them after they were promoted.

Essay 3 examines consulting firms that specialize in government relations (GR) and their role in lobbying. It looks at how these firms operate in Canada, especially after the Liberal Party won the 2015 election. The study finds that GR firms representing clients aligned with the new government's policies experienced growth. GR firms with connections to the Liberal Party or those that could quickly adapt to the new policy regime also grew. In contrast, firms with ties to the previous Conservative government or those with large, rigid operations struggled to adapt and grow.

Creative Commons License

Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.

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Available for download on Monday, August 31, 2026

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