Negotiated transfer pricing: Theory and implications for value chains in agribusiness

Abstract

In this article, the author reviews the transfer pricing problem that occurs when trust, the structure of bargaining, relation-specific investment, and complementarities in organizational design affect trading relationships. A literature review focuses on negotiated transfer pricing in the context of both intra- and interfirm transactions. The author analyzes the strategic implications of transfer pricing for organizational design as a result of the imposition of strong informational assumptions without the explicit consideration of the complementary incentives in organizational design. The author review demonstrates that there are practical benefits from addressing these issues, and points to a number of directions for future analysis. [JEL classification: D82, L23, L15, L66] © 2007 Wiley Periodicals, Inc. Agribusiness 23: 279-292, 2007.

Preço de Transferência Interna como Instrumento Gerencial: Um Estudo da Utilização por Indústrias Localizadas no Estado Rio Grande do Sul

“…No Canadá, o estudo de Steiner (2007) analisa as implicações estratégicas dos preços de transferência para o projeto organizacional como o resultado da imposição de fortes pressupostos informativos sem a consideração explícita dos incentivos complementares no desenho organizacional. Com base nesse estudo, o autor concluiu que uma política de preços de transferência deve ser considerada quanto à sua habilidade de afetar positivamente os lucros, a exigência de tempo mínimo para se chegar a um preço de transferência adequado, e sua capacidade de abordar a noção de conflitos e justiça sobre os preços entre os gestores das unidades.…”

Applying the resource-based view to alliance formation in specialized supply chains

“…There are several reasons for this increasing importance of formal contracting, particularly in the beef sector. We observe that increasing consumer orientation and capital intensity has made pricing and process information more valuable to supply chain participants, such that beef production systems evolved towards more closely coordinated chains (Hayenga et al , 2000; Brocklebank and Hobbs, 2004; Steiner, 2007). The increasing value of process information is also observed from other specialized supply chains, as Hussain et al (2006) highlight that integrated process management, information systems and information sharing are key challenging factors in the petroleum industry’s supply chain.…”