Customer-oriented invoicing in exporting

Invoicing practices for export transactions vary considerably around the world. This study examines invoicing patterns in firms with regard to their customer-orientation tendencies in three countries. Specifically, the extent of foreign currency invoicing and the degree to which firms pursue customer-oriented currency policies are investigated. Customer orientation with regard to export invoicing is also explored in terms of a series of firm-specific and market-related variables. Results indicate that foreign currency invoicing in export transactions varies across markets. More importantly, exporters using a foreign currency are significantly more customer oriented than those using their home currencies. Also, exporters using the buyer's currency have a significantly higher customer-orientation score than those using a third currency. Significant differentiating factors for customer-oriented exporters include countries of origin, bargaining position, and active involvement in exporting. Finally, customer-oriented exporters using a home currency apparently offer various incentives to buyers willing to assume the currency risk. implications and future research directions are discussed (C) 2000 Elsevier Science Inc. All rights reserved.