Text Analytics to Study Interfirm Contracts

In today’s highly competitive environment, innovation has become crucial for a firm’s survival. Therefore, many firms rely on collaborations with external partners for their R&D activities. This dissertation demonstrates the use of text analytics in studying such interfirm (R&D) contracts. In Chapter 1 introduces the use of correlated topic modelling (CTM) algorithm to uncover the contextual richness and framing of contractual clauses. Chapter 2 zooms in on a specific contextual factor, technology maturity, and examines its impact on contract design and the framing of clauses. The final chapter delves into how partner experience influences language customization in contracts. Overall, the findings emphasize the rich dimensionality of contractual language and the significance of textual analysis techniques in unraveling the complexities of interfirm contractual language. PCC.