| With the current debate about the utility of post-bureaucratic theory, this dissertation examines whether a post-bureaucratic initiative improved efficiency by fostering a competitive environment within a public organization. The problem statement is clear: Will transfer pricing theory help some public organizations become more efficient without reducing output effectiveness?;This study is significant to the public administration literature because it offers an analysis of a post-bureaucratic question involving transfer pricing theory in the public sector which has never before been conducted. Many theory-building ideas are prevalent in the literature for transfer pricing (Hirshleifer, 1956; Coe & O'Sullivan, 1993), competition (Donahue, 1989; Savas, 1992), and the post-bureaucratic paradigm (Barzelay, 1992; DiIulio, Garvey, & Kettl, 1993). This dissertation offers insight into some of these ideas.;The study is organized using post-bureaucratic theory as an evaluation of market-like arrangements within a public organization. It moves toward transfer pricing theory within the setting of a principal-agent relationship, then the public adoption of transfer pricing is discussed. A model to help understand the transfer pricing problem is offered called the "Competitive Fiscal Model" that is contrasted with the Non-Competitive Fiscal Model.;The research methodology includes a triangulated strategy of data collection from financial archives, published sources, and interviews. Data were analyzed using various financial ratios, regression equations, and content analyses that rely upon both Yin's (1994) and Eisenhardt's (1989) case study frameworks.;In general, the findings show that the implementation of transfer pricing theory contributed toward developing a competitive environment at the test site; however, control of-the transfer pricing process was not developed. While output effectiveness remained relatively constant, financial analysis shows efficiency improvements due, in part, to competition generated from implementing inter-divisional transfer pricing.;The study concludes with a discussion of the implication of transfer pricing and post-bureaucratic theories to public administration. Implementing these theories into public organizations is characterized by highly complex, interconnected relationships. Forthrightly acknowledging these complexities is important for organizations that are considering the adoption of post-bureaucratic initiatives. Significant organizational changes are required to fully implement them. |
