Date
9-25-2025
Department
Helms School of Government
Degree
Doctor of Philosophy in Public Policy (PhD)
Chair
Gerald P. Regier
Keywords
acquisition policy, defense technology, entry barriers, innovation pace, market competition, small business participation, prohibition, supplier concentration, supply chain risk
Disciplines
Public Affairs, Public Policy and Public Administration
Recommended Citation
Logan, Ché Uché, "The Impact of Prohibition-Induced Entry-Barrier Restrictions on the Pace of Defense Innovation and the Mediating Effects of Turbulent Market Dynamics" (2025). Doctoral Dissertations and Projects. 7474.
https://digitalcommons.liberty.edu/doctoral/7474
Abstract
Since the U.S. Department of Defense implemented statutory prohibitions to mitigate risks in acquisition supply chains and to incorporate national security measures in the acquisition process, high entry barriers have emerged, raising concerns about a perceived decline in the pace of defense innovation. This study examined the impact of prohibition-induced entry barriers on the pace of innovation. It assessed the mediating influence of small business participation, market competition, supplier concentration, and supply chain risk. A concurrent mixed-methods approach was employed via 30 semi-structured interviews and 420 survey responses. The qualitative findings revealed industry experiences on how Section 889 of NDAA 2019 hindered innovation. The quantitative analysis confirmed a statistically significant positive relationship between entry barriers and the pace of innovation. It showed a bifurcated innovation landscape where large firms dominated, and small firms struggled to survive. The study found that market competition mediated this relationship in a statistically significant positive way, while supplier concentration and supply chain risk mediated this relationship in a statistically significant negative way. The study’s findings extend Resource Dependence Theory and merge it with the Schumpeterian hypothesis to form a new Regulatory-Induced Innovation Constraint Theory by demonstrating how regulatory interventions shape innovation in high-security industries. This study offers empirical contributions that inform defense acquisition policy, emphasizing the trade-offs between security-driven regulations and technological advancement. The implications for positive social change suggest fostering policy adaptations that balance national security objectives with the need to sustain innovation and market competitiveness in the defense sector.
