Businesses operating outside their home territory confront new communication issues wherever they go – but Central and Eastern Europe’s mosaic of cultures represents an especially challenging environment for outsiders.
For a start there is no single definition of the region, indeed, the very use of the word “region” immediately implies the sort of homogeneity that does not exist. In daily parlance, Central and Eastern Europe (CEE) can refer to anything from six to 26 states lying between Germany and Italy and Russia’s western border.
The narrow “Austrian definition” of CEE, a core group of eight countries comprising Czech Republic, Slovakia, Poland, Hungary, Slovenia, Croatia, Romania and Bulgaria, is probably the most practical starting point. These countries, after all, have historically been the most interesting and the most active in the economic and political development of Central and Eastern Europe. These days the rest of the post-Yugoslav and South-Eastern European (SEE) states tend to be seen as part of the region, though the Baltic States, Belarus, Ukraine and Russia are mostly considered separate. Austria, albeit the de facto CEE hub, is regarded as being in the West.
Whatever its precise composition of states, an important feature of CEE is its set of strong local cultures that often override regional constructions and national borders. That diversity can be especially puzzling for companies from, say, North America, Britain, France or Germany where corporate culture is strong. These businesses typically struggle to understand why they cannot treat everyone the same way, and sometimes have to learn the hard lesson that finesse and tact are prized interpersonal skills.
There are, of course, certain unifying cultural factors across CEE. Aversion to former oppressors in Russia, for example, and a lingering resentment against Germans for the Second World War. When it comes to communications, certain common features can also be identified. Central Europe, for example, is in many ways “old world”: slower, more attentive to style and detail and more laid-back than most Anglo-Saxon countries, albeit more results oriented than process driven. Personal contact and relationships are critical. Informal networks in business are more important than official structures, which means that trust and friendship count for much. A handshake is often worth more than a signed contract and regulations, transparency and compliance are considerably less important than they are in the West. Bargaining is expected, hard feelings forgotten once the deal is done. That said, hierarchy and differences in status are taken seriously.
Such generalisations, however, serve to underline local differences. The EU accessions in 2004 and 2007 have not had much impact on national political systems, and nationalist and ethnic politics reach deep into individual life. Although many citizens speak English and German, there is no lingua franca and the preponderance of native languages in business transactions frequently gives rise to misunderstandings. Language is only a part of it. Values, attitudes, temperaments, outlooks, customs and manners all vary according to which part of the region you are in.
What follows are some specific characteristics of the five most developed markets of CEE. They highlight the overriding importance of sensitivity to local cultures and ethnic difference, the dangers of western arrogance, the risks of misunderstanding and the desirability of diplomacy. The accompanying sidebar considers the varied media landscape. (See Media)