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The effect of negotiators’ role, leadership tone, and social value orientation on expected transfer prices: additional evidence

Author

Listed:
  • Vincent K. Chong

    (The University of Western Australia)

  • Chanel Y. Loy

    (The University of Western Australia)

  • Isabel Z. Wang

    (The Australian National University)

  • David R. Woodliff

    (The University of Western Australia)

Abstract

This study examines the effect of negotiators’ role (sellers vs. buyers), leadership tone (supportive vs. non-supportive), and social value orientation (prosocials vs. proselfs) on expected transfer prices outcomes as expressed by negotiation managers. Using a 2 × 2 experiment, we find that prosocial managers’ expected transfer prices are closer to an equal-profit price compared with those of proself managers. We further find that the transfer price expectation gap between proself selling managers and buying managers under a non-supportive leadership tone is larger than it is under a supportive leadership tone, suggesting that the negative effect of prosel.

Suggested Citation

  • Vincent K. Chong & Chanel Y. Loy & Isabel Z. Wang & David R. Woodliff, 2021. "The effect of negotiators’ role, leadership tone, and social value orientation on expected transfer prices: additional evidence," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 32(3), pages 299-332, September.
    • Handle: RePEc:spr:jmgtco:v:32:y:2021:i:3:d:10.1007_s00187-021-00321-8
    DOI: 10.1007/s00187-021-00321-8
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    References listed on IDEAS

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    1. Lee Cronbach, 1951. "Coefficient alpha and the internal structure of tests," Psychometrika, Springer;The Psychometric Society, vol. 16(3), pages 297-334, September.
    2. Ghosh, Dipankar, 2000. "Complementary arrangements of organizational factors and outcomes of negotiated transfer price," Accounting, Organizations and Society, Elsevier, vol. 25(7), pages 661-682, October.
    3. Ravenscroft, Sue Pickard & Haka, Susan F. & Chalos, Peter, 1993. "Bargaining Behavior in a Transfer Pricing Experiment," Organizational Behavior and Human Decision Processes, Elsevier, vol. 55(3), pages 414-443, August.
    4. Roth, Alvin E & Murnighan, J Keith, 1982. "The Role of Information in Bargaining: An Experimental Study," Econometrica, Econometric Society, vol. 50(5), pages 1123-1142, September.
    5. Jack Hirshleifer, 1956. "On the Economics of Transfer Pricing," The Journal of Business, University of Chicago Press, vol. 29, pages 172-172.
    6. Chang, Linda & Cheng, Mandy & Trotman, Ken T., 2008. "The effect of framing and negotiation partner's objective on judgments about negotiated transfer prices," Accounting, Organizations and Society, Elsevier, vol. 33(7-8), pages 704-717.
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    More about this item

    Keywords

    Negotiators’ role; Leadership tone; Social value orientation; And negotiated transfer prices;
    All these keywords.

    JEL classification:

    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • M40 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - General
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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