Business culture and practices in Lithuania

LITHUANIA

Business Culture in Lithuania

Socio-cultural environment

Lithuania has a very family-focused culture. Social obligations and protocols are very important. Fostering close relationships is vital to Lithuanians, both in business and in the general social environment. Respecting others by making eye contact is essential (Doing business in Lithuania, 2011, Communicaid: 3).

Elements of culture

National pride and traditions have been very important in Lithuania since its liberation from Soviet control. In general, as a people Lithuanians are quite conservative, so it is best to err on the side of caution and dress professionally and use formal modes of address. However, do not be overly brusque during first meetings and engage in respectful small talk that is not too intimate, but is still friendly (Doing business in Lithuania2011, Communicaid: 3).

Business practices and etiquette

"Organisations in Lithuania have a strong respect for hierarchy and authority, with structure and delegation coming from above. This hierarchical style is reflected in many Lithuanian business formalities and settings, including the decision-making process and the use of professional titles" (Doing business in Lithuania, 2011, Communicaid: 2). Expect things to move slowly when engaging in joint ventures.

Also, "age and educational background often form the basis for corporate hierarchy. For this reason, when negotiating, it is advisable to send delegates of a similar status to those of your Lithuanian colleagues, both in age and professional qualifications. More junior members of a team should not address a senior-ranking Lithuanian businessperson directly, as it is seen as a breach of etiquette" (Doing business in Lithuania, 2011, Communicaid: 3).

Unique features

Long silences during negotiations, as one party reflects upon what the other person is saying, is not unusual in contrast to the overlapping style of communication common in the United States (Doing business in Lithuania2011, Communicaid: 3).

Unemployment rate: Lithuania

The unemployment rate, defined by the number of people actively looking for jobs who cannot find work as a percentage of the labor force, was 12.3% in the third quarter of 2012 (Lithuania unemployment rate, 2012, Trading economies). However, historically, unemployment in Lithuania has been very high. "From 1998 until 2012, [the] Lithuania Unemployment Rate averaged 11.7% reaching an all-time high of 18.3% in June of 2010 and a record low of 3.9% in September of 2007" (Lithuania unemployment rate, 2012, Trading economies). Economic conditions since the 2008-2009 international credit crisis have been improving in Lithuania, albeit slowly. The combination of a workforce eager for employment, relatively similar cultures, a relatively punctual and European-like attitude towards work, and relatively close proximity to Europe makes the nation potentially attractive to international businesses from the U.S. And the EU.