Transfer Pricing and Interdivisional Conflict

See Dittman David A. , “Transfer Pricing and Decentralization,” Management Accounting (Vol. 53, November 1972), pp. 47–50; Holstrum Gary L. Sauls Eugene H. , “The Opportunity Cost Transfer Price,” Management Accounting (Vol. 54, May 1973), pp. 29–33; and Fantl Irving L. , “Transfer Pricing—Tread Carefully,” CPA Journal (Vol. 44, December 1974), pp. 42–46.

Crompton Walter H. , “Transfer Pricing: A Proposal,” Management Accounting (Vol. 53, April 1972), pp. 46–48.

Interdivisional Transfer Pricing, Business Policy Study No. 122 (New York: National Industrial Conference Board, 1967).

Granick David , “National Differences in the Use of Internal Transfer Prices,” California Management Review (Vol. 17, Summer 1975), pp. 28–40.

Fremgen James , “Transfer Pricing and Management Goals,” Management Accounting (Vol. 51, December 1970), pp. 25–31.

See Pondy Louis R. , “Organizational Conflict: Concepts and Models,” Administrative Science Quarterly (Vol. 12, September 1967), pp. 296–320.

Pondy , op. cit., p. 298.

See Walton Richard E. Dutton John M. , “The Management of Interdepartmental Conflict: A Model and Review,” Administrative Science Quarterly (Vol. 14, December 1969), pp. 522–542; and Walton Richard E. Dutton John M. Fitch H. G. , “A Study of Conflict in the Process, Structure, and Attitudes of Lateral Relationships,” in Rubenstein Albert H. Haberstroh Chadwick J. (eds.), Some Theories of Organization (Homewood, Ill.: Richard D. Irwin, 1966).

See Gaedeke Ralph M. Tootelian Dennis H. , “The Fortune ‘500’ List—An Endangered Species for Academic Research,” Journal of Business Research (Vol. 4, August 1976), pp. 283–288; and Kerin Roger A. Harvey Michael G. , “Methodological Considerations in Corporate Mail Surveys: A Research Note,” Journal of Business Research (Vol. 4, August 1976), pp. 277–281.

For a discussion of MCA, see Andrews Frank M. Morgan James N. Sonquist John A. Klem Laura , Multiple Classification Analysis (Ann Arbor, Mich.: Institute for Social Research, University of Michigan, 1973).

Andrews , op. cit., p. 28.

The strongest interaction is: (method used for pricing) × (effect on customer division's profits); F = 1.226, df = 4,35, p = .317.

The Pearson product moment correlation is r = –.6425, on 65 cases, p < .0005.

Walton Dutton , op. cit., p. 81.