Internal and External Factors on Firms’ Transfer Pricing Decisions: Insights from Organization Studies
AbstractWell understood in economics, accounting, finance, and legal research, transfer pricing has rarely been comprehensively explored in organization management literature. This paper explores some theoretical explanations of transfer pricing within multidivisional firms drawing insights from various organizational theories – primarily institutional theory, transaction cost economics, and social networks – to develop a conceptual model of transfer pricing. This model focuses on the nature of multidivisional firms’ internal transfers, internal and external technological environments, and internal and external social environments. We highlight the importance of transfer pricing as a key strategic dimension to understand intra-firm flows and their associated costs.
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Bibliographic InfoArticle provided by Faculdade de Economia, Universidade de Coimbra in its journal Notas Económicas.
Volume (Year): (2008)
Issue (Month): 27 (June)
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theory; value; transfer pricing; intra-firm flows; multidivisional firm.;
Other versions of this item:
- Dan Li & Manuel Portugal Ferreira, 2007. "Internal and external factors on firms? transfer pricing decisions: Insights from organization studies," Working Papers 5, globADVANTAGE, Polytechnic Institute of Leiria.
- M1 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration
- M41 - Business Administration and Business Economics; Marketing; Accounting - - Accounting - - - Accounting
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- Jack Hirshleifer, 1956. "On the Economics of Transfer Pricing," The Journal of Business, University of Chicago Press, vol. 29, pages 172.
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- Spicer, Barry H., 1988. "Towards an organizational theory of the transfer pricing process," Accounting, Organizations and Society, Elsevier, vol. 13(3), pages 303-322, April.
- Peter J Buckley & Mark C Casson, 1998. "Models of the Multinational Enterprise," Journal of International Business Studies, Palgrave Macmillan, vol. 29(1), pages 21-44, March.
- Julia Porter Liebeskind & Amalya Lumerman Oliver & Lynne G. Zucker & Marilynn B. Brewer, 1995. "Social Networks, Learning, and Flexibility: Sourcing Scientific Knowledge in New Biotechnology Firms," NBER Working Papers 5320, National Bureau of Economic Research, Inc.
- William G. Ouchi, 1979. "A Conceptual Framework for the Design of Organizational Control Mechanisms," Management Science, INFORMS, vol. 25(9), pages 833-848, September.
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