Business Culture of Albania and Italy - Essay Example

International Business Culture Contents Introduction 2 Table 2 Analysis 5 Language 5 Time Keeping 5 Hofstede’s 5 Cultural Dimensions 6 Dining Etiquette 8 Conclusion 9 Reference List 10 Introduction Business dealings between companies often require cross-border interaction. In such conditions, management of cultural difference between the nations becomes an integral part. In order to ensure successful interactions between people of different culture, it is important to be aware of etiquette during business dealings (Shenkar, 2001). It has been observed that social behaviour of the people are influenced by several local factors like, religion and language, sense of morality and so on and so forth (Moran, Harris and Moran, 2007). This paper focuses on two European countries, Albania and Italy in respect to their business culture. The purpose is to find out differences and similarities between these two countries and their impact on the business environment. Several key variables have been used in order to understand the differences. The first section presents a table to compare the differences and the second section comprise the detailed analysis. Table Aspect Albania Italy Correct form of address in meetings Business meeting may take place in informal settings. Leaders of the firm generally address the business meetings. Respect of hierarchy is a common practice (TCJ Global, 2014). Meetings generally take place in a formal environment with the candidates and decision-making process generally involves participation by all (E Diplomat, 2014). Religion and Language Muslim (58.7%), Roman Catholic (10%), unspecified (16.2%) and other (5.7%). Albanian (98.8%), Greek (0.5%) and other languages like, Turkish, Italian and Romanian are spoken (CIA World Factbook, 2014). Christian (80%), Atheist and Agnostic (20%) and Muslims (1%). Italian is the official language. German, Slovene and French are also spoken (CIA World Factbook, 2014). Meeting and Greeting Shaking hands, hugging and kissing close business acquaintances. Business cards not mandatory Shaking hands, embracing or kissing on cheek. Pressing sides of the face together in case of close business associate. Exchanging gifts Albanians considers the idea of exchanging gifts for special guests as a mandatory practice, yet money is not considered as a special gift. Generally, gifts are not exchanged in initial business meetings, but may be done at the end of negotiations (Culture Crossing, 2014). Exchanging of gifts is considered as a good practice among the Italians Initial business meetings are devoid of gifts, yet gifts may be given when business deals are closed (E Diplomat, 2014). Etiquette and general Behaviour Dressing vibrantly for the meetings is acceptable. Verbal contracts are quite common showing less signs of formality. Display of loud emotions like, anger and frustration, are generally to be avoided. Dressing formally is generally required for the first meeting. Manner of the meeting may be unstructured. People are expected to treat each other with respect (Passport to Trade, 2013). Written Communication Written paperwork is kept to a minimum and most contracts are dealt in a verbal manner. Verbal communications in business are quite common, but important meetings require written communications. Time Keeping Time is not of utmost importance as it is common to be late for important business meetings and social gatherings. Importance of time is paramount for the Italians and it is considered disrespectful to be late for meetings. Analysis Language Language is regarded as an important part of business dealings as communication is the backbone of successful business negotiations. In case of Albania, it has been found that most government officials speak in English, but same thing cannot be said about people employed in the private sector. Use of interpreters or translators is a commonplace business practice. In case of Italy, English is also the most commonly spoken foreign language. In Italy, use of body language is as important as hand gestures and personal contacts are as dominant as speech. Avoiding excessive use of body language may be considered as an unfriendly attitude, which can, therefore, harm the business. This practice is not found in Albania. Given the difference in official language of the two countries, need for translators will be inevitable to carry business, if English is not spoken (Passport to Trade, 2013). In this case, it can be stated that misinterpretations of non-verbal gestures like, hand gestures, may act as severe intercultural communication barrier between Italy and Albania as Italians tend to use more such gestures. Time Keeping It has been observed that time is not considered to be an important parameter in case of Albania, but is quite important for Italy. Punctuality has been regarded as an important parameter in inter-cultural business. This is because punctuality has notable influence on the social behaviour. It is noticed that Italians expect a formal explanation if there is any delay in the business meeting and such a habit is condemnable. However, the social attitude of people in Albania makes punctuality an obsolete requirement. So, in case of business dealings between companies of these countries, it is important for the Albanians to be more particular about time factor. Hofstede’s 5 Cultural Dimensions Figure 1: Cultural Difference (Source: The Hofstede Centre, 2014) Power Distance: Power distance refers to acceptance of society regarding the inherent difference in power present in the societal structure. In case of Albania, the society appears to accept societal difference of power unquestionably. This implies that Albania accepts centralized decision-making, whereas such a practice is absent in Italy as decentralization of power in decision-making is common. In case of a business between the two, this factor must be kept in mind (The Hofstede Centre, 2014). Individualistic: The society of Albania is collectivist in nature as people are mainly driven by feelings of trust. Loyalty is considered as an important aspect of the society in case of both personal and business relations. Contrary to Albania, Italy has an individualistic society. In respect to business, an individualistic society implies that an acquaintance may become an important source of business referrals (The Hofstede Centre, 2014). Masculinity: Masculinity refers to a societal structure where people are driven by feelings of competition and achievement. In case of both Albania and Italy, it is witnessed that the societies are masculine. This implies that work environment including the business culture is driven by high sense of competition (The Hofstede Centre, 2014). Uncertainty Avoidance: Uncertainty Avoidance refers to reduction of ambiguous or unknown situations by adherence to rules and regulations framed by the institutions in the society. It has been found in case of Albania that risk taking is an important part of business decisions. There is greater acceptance of innovative products and technology pertaining to business decision. In case of Italy, though the uncertainty avoidance index is high, yet few rules are complied with and few are ignored (The Hofstede Centre, 2014). Long-Term Orientation: Trust in business is one of the most integral components in case of long-term orientation. Albanians and Italians have both been found to value trust as an essential aspect in business dealings. Trust appears to be the most important aspect of business dealings in both countries. The score of Albania in long-term orientation is 31, while that of Italy is 34 (The Hofstede Centre, 2014). Diversity It has been noticed that there are certain aspects of business that are similar between Albania and Italy, besides the differences. For instance, in terms of power distance and individualism, both the countries have different social outlook; but in terms of the other parameters like, masculinity, uncertainty avoidance and long-term orientation, they are similar. It is noted that group discussions in business is an integral practice in case of Italy, but same cannot be said about Albania as hierarchy is accepted in its business culture. Dining Etiquette Eating as a method of socializing after business dealings is widely accepted both in Italy and Albania. It has been observed that in case of both these countries, citizens love the local food. Consumption of alcohol during business lunch and dinner is a commonplace practice. Albanians take pride in their regional drink, “raki”, which they want their business visitors to taste (Culture Crossing, 2014). Though drinking is allowed for the guests, yet excessive drinking during business meetings is deemed inappropriate for both the countries. Italians prefer wine over other drinks. It is seen that Albanians pay for their guests during the first visit, especially for women, but the guests is expected to return the favour in subsequent meetings (Passport to Trade, 2013). Diversity has also been observed in the context of time keeping between the countries. It has also been found that both Italians and Albanians are prepared for lengthy negotiations and decisions taken may not even be implemented. Conclusion This paper has focused on the business environment and culture difference between Albania and Italy. Few parameters have been chosen based on their social importance and a comparative study has been conducted for both countries. After completing the analysis, it can be commented that there are more similarities than differences in the business environment of these countries. For instance, both countries are non-English speaking, so businesses often take the help of translators. The norms of social meeting and greeting are almost similar them. The practice of exchanging gifts followed by both countries while closing business deals is also a common one. There are few aspects of difference as well. For instance, punctuality is considered to more important in Italy than in Albania. Similarly, body language is an important aspect of business communication in case of Italy, but same is not true for Albania. In terms of culture, power dimension is more in case of Albania, indicating that hierarchy is more important. Nevertheless, in Italy, centralized decision-making is not very common. In short, it can be said that there are similarities as well as differences between these two countries. Reference List CIA World Factbook, 2014. Europe. [online] Available at: [Accessed 27 May 2014]. Culture Crossing, 2014. Albania. [online] Available at: [Accessed 27 May 2014]. E Diplomat, 2014. Italy. [online] Available at: [Accessed 27 May 2014]. Moran, R. T., Harris, P. R. and Moran, S., 2007. Managing cultural differences. London: Routledge. Passport to Trade, 2013. Business meeting etiquette. [online] Available at: [Accessed 27 May 2014]. Shenkar, O., 2001. Cultural distance revisited: Towards a more rigorous conceptualization and measurement of cultural differences. Journal of international business studies, pp. 519-535. TCJ Global, 2014. Doing business in Albania. [online] Available at: < http://www.tjc-global.co.uk/?lang=en&pid=etiquette_albania> [Accessed 27 May 2014]. The Hofstede Centre, 2014. Albania. [online] Available at: [Accessed 27 May 2014]. Read More