Knowledge of business etiquette is an important asset, but just as in social etiquette, customs and standards differ across cultures. What matters is being prepared, staying composed, and ideally adapting to these differences. This ability is called intercultural competence. Anyone who wants to compete in the global marketplace must develop it. The ability to work effectively across cultures helps win new clients and ensures that international projects are successfully completed. A lack of intercultural competence, on the other hand, can pose serious risks, such as damaged cross-border relationships or harm to a company’s reputation.
Let’s take a closer look at some intercultural differences in business etiquette, focusing mainly on European countries.
Nonverbal Communication
In general, it can be said that the further south you go, the livelier the body language and the more expansive the gestures.
The cold climate of the northern countries has also influenced the behavior of their inhabitants; during a conversation they seem almost frozen. They gesture moderately and the only touch you can expect is a firm handshake when greeting. We Central Europeans use our hands much more often, we touch our communication partner, we shake hands not only when greeting but also when closing a deal. In southern Europe the typical temperament is expressed nonverbally as well. In western Europe, the above rule applies – the further north, the more restrained the nonverbal communication, typically the UK, while in the south of France you will encounter a wide range of gestures and signs. An exception to the rule are the Irish, who have not adopted anything from their distinguished neighbors and involve their whole body energetically while speaking.
Our expansive gestures are perceived positively by southern Europeans, but by northerners as aggressive and intimidating. Since we keep a smaller personal zone than inhabitants of northern Europe, during a conversation a northerner may unconsciously step back from us.
What feels friendly and positive to southern Europeans can seem aggressive and intimidating to northern Europeans, who also prefer a larger personal space.
Punctuality
Arriving on time to business meetings should be a matter of course, yet punctuality is not natural to everyone. In Croatia and Spain slight delays (up to 10 minutes) are tolerated, in France and Cyprus they do not care about precision at all. Elsewhere, however, the rule applies: “better 10 minutes early than one minute late.” Countries such as Austria, Switzerland, and Germany belong here. In some northern states (Finland, Sweden, Denmark, and Lithuania) absolute punctuality is also observed and required.
Forms of Address
You may be surprised, but in quite a few countries they do not insist on the use of titles. Nobody will call you “Mr. Engineer” in Hungary, Belgium, or the Netherlands. A Bulgarian business partner would rather use your function than your title. And Danes and Lithuanians even address by first name. However, in Austria and Germany omission of a title will not be forgiven.
Language Skills
In Europe you can mostly get by with English, but basic knowledge of your partner’s native language will earn you valuable points, especially in Bulgaria, Spain, and Malta. French and Portuguese businesspeople even require communicative knowledge of their native language. Hungarians also prefer their mother tongue, but accept an interpreter. In Estonia you can communicate in Russian, but always start the conversation in English. You may switch to Russian only after “breaking the ice.” Interestingly, German is preferred, apart from Germany itself, only in Austria. Be careful: their German differs considerably from standard “school” German, and they do not take this into account. The highest level of foreign language knowledge is found in Denmark and Latvia.
Personal vs. Business Relationships
In Hungary and Cyprus closer contact is preferred, home visits are not unusual. A Turk would be outright offended if you refused an invitation to his home and did not reciprocate. Spaniards are proud of their children and wife – showing interest in their family will earn you great favor. For the English and Germans, on the other hand, privacy is sacred.
Business Negotiations
And what to expect during business negotiations themselves? When to prepare for hard bargaining and when for friendly informality? Be sure to prepare for the first style in Sweden and Estonia. Businesspeople in Hungary and Luxembourg are also tenacious. A Finnish business partner prefers to remain silent and listen. You will succeed with him only with a vision of long-term cooperation, as Finns are not inclined to occasional deals. In France prepare for lengthy negotiations and frequently changing agreed conditions. It may also happen that a different person shows up to the meeting than the one you originally negotiated with. Very pragmatic approaches are found in Austria, Belgium, and the Netherlands; in Slovakia they are flexible in the interest of successful business. In southern European countries, hurry or pressure during negotiations does not pay off. Do not interrupt a German partner or oppose too strongly; uncompromising defense of one’s own opinion is also not tolerated in the UK. In Denmark strong egalitarianism is promoted, so forget about excessive self-promotion and do not demand too much respect from lower-ranked people. Do not make ironic remarks – Danes do not have a sense of irony. Expect a friendly and very informal atmosphere in Iceland. Nobody will be surprised that Turks are traders through and through; long bargaining and patience are a must.
When dealing with Lithuanians, beware of one crucial thing – Lithuania has the worst payment discipline in all of Europe.
Behavior
According to expert sources, behavior is a set of a person’s external manifestations. Just as in social life, in business dealings you will encounter different types of behavior. Informal and friendly treatment can be expected in Ireland, Iceland, and southern European states. Formal behavior with polite distance is expected in Austria, Switzerland, and the UK; Hungarians, however, take distance as a sign of contempt and distrust. In Germany you cannot do without good manners; our neighbors are very polite in business negotiations, almost stiff. Although the French are social and temperamental in private, in professional relationships they emphasize politeness without personal closeness. Northern coldness has already been mentioned several times, so you will not be surprised by the reserved and even closed nature of people in Finland and Sweden.
Dress and Appearance
Choose formal dress for meetings in Slovakia, Turkey, and Lithuania. Wear a dark suit in Cyprus and a classic pinstripe in the UK. In contrast, informal dress rules in Denmark. Austrians pay great attention to their appearance, branded clothing is a must. In Italy and Spain people also take great care of their looks and follow fashion trends (including men). In the latter country, high-quality and perfectly clean shoes are particularly appreciated.
Details That Can Help or Hurt
In most countries you will score points with knowledge of their history, which is highly valued in Slovakia, Austria, and southern European states. In Poland show gallantry toward women and respect for superiors. In the UK follow the ritual of introductions – name plus a short piece of information about the person. For a Lithuanian business partner, have a small company gift and a business card in a luxury design ready. In the eyes of Lithuanians, luxury items give you prestige. In Switzerland, by contrast, ostentation and luxury are considered wasteful. Do not attempt to visit a business partner unannounced in Austria or Denmark. Germans cannot stand any deviation from the rules. Even something as small as bad parking will be clearly pointed out to you.
Finally – How Do Foreigners See Us?
According to them, Czechs are hardworking and creative. In business relations with us there is said to be only one rule – never send anyone to a meeting who does not have a sense of humor and irony.
Would you like to improve your intercultural skills and apply them in international business? Then an online MBA program Marketing Management and International Business.
