Mohammad Balasinorwala
Pronouns:
Research Mentor(s): Yue Zhou
Research Mentor School/College/Department: Strategy / Business
Program:
Authors: Catherine Magelssen, Yue Zhou
Session: Session 6: 3:40 pm – 4:30 pm
Poster: 82
Abstract
While there has been significant research to examine contracting practices between firms, there is still a very notable gap in our understanding of internal transactions, or transactions within firms, and the dynamics therein. This study aims to tackle this hole in our knowledge of business contracting by investigating the details of how firms manage internal versus external transactions. After gathering and compiling a large set of contracts from SEC filings and proprietary data, we hand-coded them looking for key variables of interest such as knowledge sharing, exclusivities, and rights to activities, among others. By examining these variables with correlation analysis, graphical representations, and descriptive statistics, we compared across internal and external transactions. Our anticipated findings suggest that internal transactions exhibit heightened levels of knowledge sharing, activity rights, and other such privileges, as well as fewer confidentiality and monitoring clauses, and other such limitations, when compared to external transactions. This research will not only contribute to a deeper understanding of intra-firm dynamics, but will also better inform us about related strategic decision-making processes that businesses undergo. By exploring the nuances of these transactions, we can advise managerial practices and policy frameworks in order to optimize efficiency and boost innovation.
