Are you doing business with foreign partners in a country somewhere around the Baltic Sea? Then you should be prepared that even if we seem to be similar and see things in the same way, there are still things that set us apart. Be prepared for cultural peculiarities! For example, don't waste time making small talk in Scandinavia or Germany, aim for win-win situations in Finland, and avoid discussions about politics and history in Lithuania and Poland.
As part of the IRIS project (2017-2021), Dalarna Science Park and 13 project partners in 10 countries interviewed local companies in their respective home countries to find out what the current business culture looks like. In the text we make an overview of the answers and the document in its entirety can be found HERE. The document is based exclusively on the participants' and their clients' own experiences and perceptions of the business culture in their own country.
Variations within countries
One thing all partners agreed on was that there are variations in how business culture works depending on the generation you grew up in, the part of the country you are in, whether it is a rural or urban culture, and the industry you are in. We have compiled the most overarching insights that seem to apply regardless of the domestic variations.
Clarity or polite euphemisms?
Across the 10 countries, all companies agreed that sincerity, politeness and being "straight to the point" are the most valued qualities when doing business. However, there are degrees of straightforwardness and clarity and when doing business, one should listen and take note of what the other party is talking about and how they express themselves.
In Scandinavia, it is common for people to express themselves clearly and precisely during meetings, although they also appreciate elements of humor and like to joke around. On the other hand, people are less fond of small talk and personal questions and the same is true in Germany. This is because time is considered valuable and it can be disrespectful to talk it away when time has been set aside for important negotiations. If you are going to Lithuania, Poland, Latvia or Kaliningrad Region, Russia, you can be more relaxed. Small talk about hobbies, sports or family is more appreciated, and you are happy to devote some meeting time to this.
In Scandinavia and Estonia, don't forget personal space. You should also be careful about interrupting and refrain from speaking too loudly, which is considered both disruptive and tactless. Germany tends to avoid emotionalism and Belarusians tend to avoid conflict and heated discussions.
What about keeping appointments? In Latvia and Poland, you can be up to 15 minutes late without checking in, but in Denmark and Germany it could cost you business as it could be interpreted as disrespect.
Giving criticism
Giving and receiving feedback is one of the trickiest parts of human communication. So it comes as no surprise that criticism is a sensitive issue when it comes to international business meetings. In business meetings, you should be mindful of the relationship you have with the other party. If you feel comfortable with representatives from another country and have communicated with them before, you may feel more relaxed. However, criticism has cultural aspects and can determine the success of the meeting. Estonians don't appreciate being criticized in a business situation for example, but Germans or Finns are happy to take feedback if it is supported by facts. For them, it is a sign of sincerity that should not be taken personally.
Negotiation strategies
Soft versus hard negotiation is another part of business communication you should pay attention to. Germans are tough, competitive negotiators, yet they don't like to be pressured. Showing impatience can be negative. Finns have a softer negotiating style, compromises and win-win outcomes are important, just like in Sweden. If your counterpart doesn't show emotion, it doesn't mean the battle is lost, they just need more time to think through your offer.
Latvians, Lithuanians and Poles prefer paper contracts and, as in neighboring Belarus, you should be very detailed and specific when describing your offer. Here too, however, you should avoid pressuring them.
Is everyone equal?
Making decisions and who is responsible are some important cultural aspects in a meeting and can determine how the future cooperation will look like. The hierarchical way of working in another country can often be difficult for us Swedes to accept when compared to how we work in Sweden. Here, "subordinates" are often present at meetings and have the right to make decisions. In Poland, on the other hand, this is completely unacceptable and can even be seen as an insult to business leaders. In Poland, meetings are normally attended by senior managers and business leaders to make decisions on possible cooperation. Therefore, it is important that there is hierarchical equality in meetings - managers have meetings with managers.
A stronger hierarchy also exists in Belarus, Lithuania, Latvia and Germany, meaning that companies are expected to bring representatives of equal or similar positions to the meeting and authority is not openly questioned.
Danes, on the other hand, value an egalitarian way of working, which means that in a meeting you can meet both business leaders and lower-level officials. In Denmark, you should talk and discuss with everyone in the meeting and listen to everyone's opinion, and you can also 'correct' the manager if they say something that is not correct.
Politics equals warning flag!
Politics and other international relations are hot topics that often raise warning flags. A single careless comment can bring any negotiation crashing down. Unless you are very knowledgeable, it is best to avoid discussing the shared history of the Baltic States and Poland.
In Russia, it's also best to avoid political topics, and never make jokes about Russians unless you know your company really well! Only Russians are allowed to make jokes about Russians.
But it is not only in the East that there are cultural minefields. They are widespread even in the old European democracies. Germans, for example, tend to avoid political topics, but are happy to discuss art and fine culture. We Swedes may seem very liberal, non-hierarchical and open on the surface, but if you criticize our society in any way - a warning flag goes up! We are genuinely proud of our democratic country. Bringing an English interpreter to a meeting in Denmark might be perceived as a bit rude to Danes because the vast majority can speak English and are proud of it.
This overview has been compiled as part of the IRIS project, funded by the Interreg Baltic Sea Region program. In the project, we have developed new tools to support the innovative capacity of entrepreneurs around the Baltic Sea.
