Cultural Aspects of Business in Croatia

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Introduction

When doing business in other countries, it is important to be closely acquainted with the culture and traditions of these countries, as well as to the local business etiquette, in order to be able to conduct the business successfully and avoid conflicts that may result from the cultural gap.

In this paper, the Croatian culture will be discussed in order to prepare a businessperson who is going to live in Croatia for an extended period of time for doing business there. Some norms, values, perceptions typical of Croatian culture will be discussed, as well as some communication strategies and things to avoid while interacting with Croats.

Croatian Culture

Croatia is a country located in Southeastern Europe, near the Adriatic Sea. It was a part of the former Yugoslavia; Croats still have rather strong cultural ties to Austrians more than to other former members of Yugoslavia (Gilliland n. pag.).

On the other hand, Croatia has a history of national tension and hostilities with Serbs. Most of the country’s population (which is approximately 4.3 million people) are Croats; the rest are Serbs, Hungarians, Gypsies, and others. The main religion in Croatia is Roman Catholicism. The official language is Croatian; it has a number of dialects which are spoken in different parts of the country.

The country’s economy is dominated by the service sector (importantly, tourism is a major source of income); the second major sector is industrial, whereas agriculture occupies the third place. Croatia has a high Human Development Index, and it is developing rather fast (Seitz 105). It is a member of the EU, UN, NATO, WTO, and the Council of Europe.

Croatia has rather strong cultural traditions; firm relationships between the members of the family are a part of them. It is worth pointing out that the traditions are rather strong in the countryside, but in the urban areas, they are weaker (Villanueva par. 9-10).

What to Know about the Croatian Culture before Coming to that Country

Before coming to Croatia for the long term, it is important to learn of some basic cultural norms and practices of those people, especially the ones related to everyday communication and interaction. It is considered rude to address a person by their first name until you are given explicit permission to do so.

It is also considered a bad tone to greet someone whom you do not know very well with too much familiarity and can be perceived as offensive. Still, it is important to greet everyone at e.g., a business meeting, for a failure to do so, could be considered offensive as well (Villanueva par. 2).

After being a part of another country for a period of time, Croatians developed a strong sense of national pride, and many of them can be suspicious or a little arrogant to foreigners. It is crucial to avoid national topics while communicating with them.

The Cultural Norms that Are Useful to Know

While sojourning in Croatia or living there for an extended period of time, it is useful to take into account a number of cultural norms that Croats keep to. For instance, Croats are usually very mindful of the current fashion, and they commonly try to make their appearance match the latest Western trends.

It is important to greet and show respect to everyone, for Croats, in many cases, acknowledge even strangers (however, as it was mentioned, one should not show too much familiarity while communicating with others). Still, many Croats will be interested in knowing more about one’s family and origins; however, discussing personal problems or personal financial issues is not appreciated.

It is also useful to ask Croats about their opinions about the problems at hand, for they will usually be happy to help, and this will earn more trust from them (“Croatia” n. pag.).

The Cultural Faux Pas in Croatia

As it was already mentioned, discussing national questions with Croatians is extremely risky because of widespread nationalistic views. It is paramount to avoid talking about other ethnicities of Yugoslavia, as well as religious issues; these topics are usually viewed as taboo. Criticizing Croatians can openly offend them profoundly, so it is better to make polite suggestions instead of complaining.

Planning things with Croatian co-workers for weekends without their explicit permission is another faux pas, for weekends are commonly perceived as days to be spent with family, and ignoring that will be viewed as a severe breach into one’s personal and family space.

Also, while doing business with Croats, one needs to avoid discussing personal financial questions, mixing personal and business issues, or discussing religion and problems that are often perceived as belonging to the domain of religion (e.g., divorce, assisted suicide, abortion, etc.).

It is also crucial to watch one’s gestures and not to raise one’s thumb, index, and middle fingers simultaneously under any circumstances, for this gesture is associated with the Serbian nationalism to which Croatians are hostile (“Croatia” n. pag.).

How not to Stand Out as an Outsider in Croatia

In order not to stand out as an outsider, the most obvious step is to learn the Croatian language. It is going to be very useful if one is going to live in Croatia for a long period of time. It will also earn one much respect from Croats.

Still, whether one is going to learn the language or not, it is important to get accustomed to the Croatian manner of making conversation, being direct, open, and sarcastic (Croats tend to be sarcastic without even changing their facial expression, and may expect the same of their interlocutors). It is vital to understand their worldview, their attitude to their connections with other people, and treat these with respect so as not to be perceived as rude or alien.

The author of this paper is inclined to think that it should be necessary to adapt to such a worldview if one is to be successful in doing business in Croatia and learning to show understanding of it because confronting it even implicitly appears to be likely to result in confrontations or in Croats being offended. On the other hand, it might be possible to blend in at least partially if their values are respected. However, the author would not like to adhere to that worldview completely.

Croatian Culture: Individualistic or Collectivistic?

It is stated that Croatian culture is rather a collectivistic one. Croatians often perceive their history as sacred and think that the roots of their nation should be perceived as the grounds for trust (Lažnjak 1029). As members of a collectivistic culture, Croats pays much attention to their familial relationships and sees loyalty as a crucial feature of any person.

Importantly, Croats might perceive relationships at work in a similar way, in moral terms. Also, collectivistic culture means that management decisions should be taken accordingly, considering employees more as a group rather than separate individuals, leaning towards compromise rather than confrontation.

High power distance is also characteristic of the Croatian culture (Lažnjak 1028-1029), which means that Croats will normally react to a more authoritarian leadership in their workplace, and might even expect it. It is important to maintain authority and some distance between one’s employees from Croatia, lest one may lose their respect.

The fact of Croatian culture being collectivistic means that an American person doing business there might have to make an effort to adapt to it and get accustomed to viewing one’s relationships with others in a different light, for American culture is one of the more individualistic cultures in the world.

The Perceptions of Time in Croatia

Croats view time in a different way that the citizens of the U.S. do. Instead of relying on schedules and plans, they tend to focus on the tasks at hand and pay more attention to the present. They might not hold strictly to deadlines and often tend to do their work at the last moment.

On the other hand, even though a 15-minute threshold is considered normal in social situations, punctuality in business is highly appreciated; for instance, timely payments are considered crucial for businesses (Budak, Rajh, and Stubbs 105).

The Views on Children and the Elderly

It is stated that “family is the heart of Croatian life” (Cvitanic 65). Children often live with their parents for a long time before leaving their homes (Cvitanic 67). The older members of the family usually enjoy the benefit of a higher status than the younger ones. Even though Croats do leave their parents’ homes, when the parents grow old, they are taken to their children’s homes to be taken care of. It is very uncommon for Croats to use nursing homes for the elderly.

Croats view their children as a part of their family and endeavor to provide them with a high-quality education. Primary and secondary education at schools is compulsory; after that, students may enter one of the seven universities located in various cities of Croatia (Cvitanic 72-74). Children are usually taught to respect their family and elders, according to the spirit of the Croatian family values.

Techniques to Be Used in Communication

Croats are often rather straightforward and direct in their interactions, but it is important for them to remain diplomatic and respectful to their interlocutors. They often speak loudly and use many gestures; speaking too quietly or shyly might be perceived as a dearth of confidence. People of Croatia usually value their personal space, so standing too close to them during a conversation or touching them until one’s close relationships to the interlocutor have not been confirmed would not be a good idea.

On the other hand, maintaining too long a distance during a conversation might also be taken as a sign of dislike. It is also worth pointing out that most Croatians will expect eye contact, and avoiding it can be viewed as a sign of dislike as well. In a conversation, it is important to remember not to use people’s first names until close relationships have been established. Usually, a title and a surname are used when addressing Croatians; if one is unsure which titles to use, it is possible to utilize the Croatian analogs of Mr. and Mrs./Miss.

When interacting with Croats, it is very much recommended to get accustomed to their communication style and try to adapt to it, for Croats seem to be able to take offense if the communication style mismatches their own much enough. Significant cultural misunderstanding is able to cause crucial harm to any foreigner doing business in Croatia.

Croatian Local Business Practices

Croats often strongly favor clan organizational culture (Nukic and Matotek 35-36). It is one where “employees respect each other: workers see their managers more as mentors and management tends to take into account the opinion of all employees when making business decisions,” which is “the main source of job commitment of employees and their effectiveness” (Nukic and Matotek 33).

Most businesses adhere to dress codes; men wear a formal suit with a tie, whereas women’s apparel also must be formal and not too revealing. Business meetings may be quite prolonged, and time is hardly ever a good reason to finish them. It is also important to build good relationships with the people one is doing business with; when starting a meeting, doing small talk is almost necessary, for talking about business outright might be considered rude.

Conclusion

As can be seen, it is important to learn about Croatian culture in order to avoid possible conflicts and confrontations if one is to do business in that country. One should be mindful of the values of the people of Croatia, learn their ways of communicating with each other and keep to their etiquette in business. It is also crucial to be aware of the faux pas of the culture and avoid them in order not to be trapped in confrontations while interacting with the local people, as well as with one’s employees and colleagues.

Works Cited

Budak, Jelena, Edo Rajh, and Paul Stubbs. “Mind the Gap: Citizens’ and Companies’ Views of Business Culture in Croatia.” Croatian Economic Survey (2013): 89-114. ProQuest. Web.

Croatia: Cross-Cultural and Language Training. n.d. Web.

Cvitanic, Marilyn. Culture and Customs of Croatia. Santa Barbara, CA: ABC-CLIO, 2011. Print.

Gilliland, Mary Katherine. Culture of Croatia. n.d. Web.

Lažnjak, Jasminka. “Dimensions of National Innovation Culture in Croatia: Content Validity of Hofstede’s Dimensions.” Drustvena Istrazivanja (2011): 1015-1038. ProQuest. Web.

Nukic, Ivana Sandrk, and Josipa Matotek. “Importance and Trends of Organizational Culture in Construction in Eastern Croatia.” Ekonomski Vjesnik (2014): 25-40. ProQuest. Web.

Seitz, Hans Joachim. “Ongoing Strong Development of Science and Culture in Croatia is Impressive.” Croatian Medical Journal (2008): 105. MEDLINE Complete. Web.

Villanueva, Marilyn. A Deeper Understanding of Croatia’s Culture. 2015. Web.

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