Customer-oriented invoicing in exporting

Invoicing practices for export transactions vary considerably around the wo rld. This study examines invoicing patterns in firms with regard to their c ustomer-orientation tendencies in three countries. Specifically, the extent of foreign currency invoicing and the degree to which firms pursue custome r-oriented currency policies are investigated. Customer orientation with re gard to export invoicing is also explored in terms of a series of firm-spec ific and market-related variables. Results indicate that foreign currency i nvoicing in export transactions varies across markets. More importantly, ex porters using a foreign currency are significantly more customer oriented t han those using their home currencies. Also, exporters using the buyer's cu rrency have a significantly higher customer-orientation score than those us ing a third currency. Significant differentiating factors for customer-orie nted exporters include countries of origin, bargaining position, and active involvement in exporting. Finally, customer-oriented exporters using a hom e currency apparently offer various incentives to buyers willing to assume the currency risk. implications and future research directions are discusse d (C) 2000 Elsevier Science Inc. All rights reserved.