Cultural Analysis of the Impact of Cultural Differences on Non-Verbal Communication during the On-Site Business Meetings of Slovenian and Montenegrin Partners

The research area of this thesis is the cross-cultural communication in business, with focus on the intercultural differences and NVC in international partnerships. The focus of this research was the cultural differences in the perception of the business leaders and company managers. Montenegrin and Slovenian culture were in the research focus, and were also analysed through cross-cultural comparison of cultural dimensions developed by Hofstede. The empirical part of the research consisted of expert interviews with business leaders and managers from both countries and their answers were compared on several aspects of NVC.

The market sets standards for performance and this requires being competitive in the field of expertise. To become competitive in a globalised world, one must build international networks, which can be challenging. Intercultural managers are valuable to this network-building process, since they can mediate and facilitate communication between two business leaders with culturally different backgrounds. Being a potential source of misunderstandings, differences in language, values, norms, expectations or experiences can appear during business conversations and strongly influence the business flow (Krstić 2017). Communication and culture are two strongly intersected constructs, and together they exert a powerful influence over human behaviour.

However, communication and communicating style one chooses to use is under the influence of culture. Communication is not solely limited to the verbal part, but also includes a less conscious level to it, and the significance of this part is also shown in the research that implies how 93% of communication belongs to non-verbal, 55% belongs to body language and 38% to the tone (Kudesia and Anger Elfebein 2014). As culture influences the use of communication, it also influences non-verbal expressions. Absolute understanding of one's own reactions and deeds usually leads to believing that everything that deviates from one's own standards, which are mostly culturally conditioned and learned, is abnormal and wrong (Szkudlarek et al. 2020).

Consequently, when one does not understand something, one tends to reject it and this is a common action in intercultural relationships where people bring their own, culturally specific behaviour. One of the areas of intercultural encounters is linked to the non-verbal behaviour (NVB) of business partners, which to name a few are kinesics, paralanguage, physical appearance, haptics, proxemics, chronemics and location of business meetings that differ from country to country. It is not known to what extent (if any) NVC impacts the workflow of business partners from Slovenia and Montenegro, since research on this subject including these cultures does not exist. Researchers looked specifically into the posture, eye contact, physical appearance, proxemics and chronemics during the on-site business meetings, comparing and contrasting perceptions from the two countries.

Therefore, communication between at least two business leaders or managers is under the influence of several factors, from personal to social and cultural. These create a dynamic context within which business meetings occur. If there is not enough awareness or knowledge about the respective cultures included, misunderstandings of certain expressions could happen. Research shows that these differences can sometimes go to extremes, as in the example of the gesture ‘OK’, which is in some cultures considered as positive, in others a symbol of money and in some even a threat (Chaney and Martin 2011). This is a practical example of how one simple gesture can be misinterpreted over the world. Other examples, such as location of business meetings, whether meetings are organised in the office or in restaurants can also be misinterpreted as unprofessionalism or distant, strict work relationship. Consequently, it affects the other side and its vision of the relationship and the business which is being built, so that one side can perceive partners as unprofessional and worry about the business outcomes because of the relaxed attitude towards the work. Furthermore, it can lead to breaking up the business relationship. Chronemics or the attitude towards time is also very sensitive to cultural influence and also to misinterpretations as unprofessional behaviour, if business leaders or managers do not strictly respect deadlines or that work timetables are ‘too’ flexible and open to change.

Given these examples, one can see the possible outcomes if cultural differences are significant or significantly influence NVC, leading to misinterpretation and more drastic outcomes such as conflicts and breaking up.

In order to prevent and manage these conflicts and misunderstandings, people need to understand such differences and accept them, therefore assuring maintenance of a successful and fruitful intercultural business relationship. In other words, being aware of cultural differences and how they affect one's own behaviour and way of expressing can help avoiding conflicts and misunderstandings.

Research was undertaken in two phases, the planning phase and the execution phase. In the planning phase, a literature review was carried out, together with cultural analysis and preparation for the interviews. The analysis of the data collected from the interviews and preparation of the practical recommendations was part of the execution phase.

MQ: What is the impact of the cross-cultural differences (Slovenian and Montenegrin) on the specific types of NVC (kinesics, proxemics, chronemics and physical appearance) during on-site business meetings?

SQ1: How do business leaders in both countries perceive and react to the cultural specificity of non-verbals – the posture, eye contact, physical appearance, proxemics and chronemics during the on-site business meetings?

SQ2: To what extent do business leaders in both countries take into the account the posture, eye contact, physical appearance, chronemics and proxemics of the opposite partner while dealing with business during on-site meetings?

In this research, the qualitative method was used for the literature review and for the field work, gathering the primary data through interviews. This method was chosen because of the topic of the research, which is essentially NVB during on-site business meetings and this method allowed gathering as much information as possible. Interviews were semi-structured in order to allow much freedom and flexibility for both respondents and the researcher, whilst keeping the structure of the interview and assuring that all the relevant topics were discussed.

Snowball technique was conducted in this research, which allowed finding respondents from a similar business environment. The respondents were selected mostly in pairs, since they came from the same companies, and have had close business relationships. All the respondents have daily contacts with the Slovenian and Montenegrin sides, respectively, and have >3–4 years of intercultural experience.

This particular technique was chosen due to the researcher's non-involvement in the business world of both the countries. Therefore, it was easier to act on references, such as contacting one person and following their recommendation on whom to invite for the interview. This allowed having two perspectives on one business relationship, which is even more enriching, as it gives a two-angle data to be compared. Also, having people recommending other people implied more responsibility to accept the invitation and participate in the research, which was very convenient for the research.

Research was conducted through expert interviews, which were conducted in an online form, due to the pandemic. The interview summary table with the demographical data of the participants, as well as the invitation letter and interview guide are given in the Appendix. The interviews usually took place for around 30 min. In order to be precautious with the data, they were recorded on both phone (recorder app) and through Zoom application.

Regarding the data, each respondent was viewed as an individual and his or her answers were viewed as a single phenomenon and offered unique perception on the NVC. This is why the semi-structured interview technique was chosen as the most suitable. It offered the space for dedicating time to the respondent and reaching insights into specific NVC topics, but also allowed the respondent to share as much as one wants, sometimes leading to detailed stories from business meetings. These stories represent a unique window into business meetings and how they develop, which could only be once there is confidence between the interviewer and the interviewee and questions could lead to elaborating on the answers.

Hofstede's dimensions of culture were the basis of the analysis, starting from the point at which the gathered data was analysed. Both Slovenian and Montenegrin culture were analysed and compared on the basis of Hofstede's dimensions, which offered a broad perspective on their differences. Starting from that point on, it was easier to navigate interviews and modify questions according to the cultural background of each participant, without being suggestive. In other words, the theoretical framework supported the research through conducting the interviews.

After gathering the data, qualitative content analysis was performed in order to easily discover patterns in the responses and offered a more transparent and actual comparison of the two cultures. Detailed transcripts were analysed and later integrated in the conceptualisation of business cultures for both countries. On this basis, interpretation of the data was performed and the answers were not isolated from the theoretical background and the cross-cultural comparison of both Slovenia and Montenegro. In this way, the interpretation could include more information and support the reasoning of respondents and their answers. This integrated approach to interpretation offered at the same time more structure and freedom for analysis and building conclusions.

The analysis of the data, highlighting the differences and similarities in the perception of the NVC in both Slovenian and Montenegrin partners, its influence during the on-site meetings and finally combining it with the theoretical knowledge from the selected culture contributed to the rich interpretation which benefits by forming the recommendations for both parties, but also for intercultural managers in general.

To sum up the methodology behind the research, a theoretical framework was built around the cross-cultural analysis of both Slovenian and Montenegrin culture. After that, communication, its styles and finally the non-verbal part of it were explained with a focus on specific NVC expressions which were the centre of attention of the research. Respondents were business leaders and company managers who have worked for several years in both the Slovenian and Montenegrin markets. This offered rich experience and answers which allowed great insights into the topic of cultural differences affecting not only NVC, but also the work flow. Unique stories and the experience of each respondent were highly valuable to this research. In order to gain a two-angle perspective on the same subject, snowball technique was used and this led to having mostly respondents from the respective partner companies. The data were gathered through semi-structured interviews, which again allowed space for in-depth answers and stories which preceded the formal interview, and this would not be possible by having a questionnaire or a survey in any form. Later, analysis was performed through qualitative content analysis, which offered a space for more integrated and cohesive interpretation of the data, finally leading to strongly supported conclusions and recommendations for both sides.

While talking about their experience of conflicts in the intercultural environment, Montenegrin respondents did not report on any conflicts happening during their period of working in the company. P2 commented that, ‘we’ve never had any conflicts with our international partners, at least since I am working here’, while P3 added that, ‘whatever small conflict we had due to deadlines was solved immediately and everyone was happy, we’ve kind of become ‘Slovenes’ in regard to that’.P1 elaborated on that:

We’ve never had any major conflicts, I did not notice any dissatisfaction from their side, I don’t know, it could be because they come here and then they behave differently or they have different expectations, but I have not noticed any animosity towards our company. We have a very friendly but professional relationship and I don’t know, maybe they behave differently when they negotiate and work with someone in Slovenia, it could be that too.

P4 also emphasised great communication as a pre-condition for effective conflict-solving:

During the pandemic, we have only strengthen our online communication channels. I now work constantly with two or three managers in Slovenia, which are all so helpful and usually they have more knowledge about certain business things, I don’t want to bother you now with it, but they really are open and understanding with postponing that happens sometimes in our sector. You asked me about conflicts, I don’t think I’ve had any experience with that, no, now that I go back, I don’t think we did, at least I personally didn’t.

P5 had a similar experience, saying that ‘there were rare occasions of misunderstandings which were solved quickly’.

P6, who is the richest in the intercultural work experience, reported that

in my 20 and something years, most of them working in Montenegro, I did not have any conflicts, and I think it is much related to the primary approach you take when you come to the new environment. I have made great connections which helped organize everything well and formed straight principles and rules from the beginning.

P8, head of the management in the insurance company, commented that ‘Montenegrin partners are more relaxed than we are, however, they do their work’. P9 had an interesting observation: ‘Sometimes funny things happen – our partners put on a great show, not that they are not capable enough or something like that, but sometimes it was just, how do you say it, ‘selling fog,’ while they were not fulfilling with their part of the job’, continuing on that ‘sometimes we would ignore it, sometimes we would become aware of it later on, but sometimes we would have to say it, but they did not argue on that, therefore all the conflicts were solved very, very quickly’. Therefore, Slovenian respondents perceived Montenegrin partners sometimes as show-offs, which covers up for the work which has not been done. On the other hand, Montenegrin respondents seem to be satisfied with their respective partners, pointing out the professionalism and organisational skills of each other.

When talking about each others’ perspectives on Montenegrin and Slovenian cultural differences in general, they all reported on the ‘historical and cultural context which bonds us’ and P1 compared this relationship and differences with German and Austrian partners, saying that:

I think we are much more similar than we are to German or Austrian partners, with whom we work a lot. If you want me to explain it why, I think it's because of the historical and cultural context, just to mention Yugoslavia, which we know about. From the Balkan wars in 1912–1913 then when we were in the major part under the Ottoman reign and then Slovenians were under Austro-Hungarian reign, and we can see the differences in the architecture. Overall, I can say that they are much more organized and follow the rules more strictly. It is the awareness which was developed over the centuries, to follow the rules and this left marks

It can be seen from the responses that both groups of respondents showed awareness of the geographical proximity of the two countries and also of historical circumstances which are much present in the modern societies of both.

This geo-historical bond is the bridge for the two; however, most respondents showed awareness of the danger of generalisation and did not want to make general statements about either culture.

On the other side, Slovenian respondents perceive Montenegrin business partners in the following way – P7 emphasised ‘the importance of the informal part of the meetings’, especially when it comes to ‘dealing with legal part of the work’ and the importance of ‘personal connections’, which is much more present in Montenegro than in Slovenia. P8 gives the example of one director in Montenegro, who famously said: ‘It is important to eat, drink and gain as much profit as possible’, continuing with ‘and this shows the attitude towards work, which also shows how fast we are leaning towards capitalism’. P9 gave another statement: ‘If you want me to say it's different, I don’t know, I couldn’t. However, one thing that is evident that you can arrange more things in the informal part of the business meetings than during the formal’. Also, he commented that:

we usually prefer to go to Montenegro, rather than them coming here and it was strange to me, once, when we went there on Wednesday, during working hours – every coffee shop and bar was full, and later there were at least five bars with live music, you don’t have that in Slovenia.

What is meant by this is the most superficial and closer to eye aspect of the NVC, which includes facial expressions, body movements and eye contact. Kinesics covers a great array of NVBs, therefore it is grouped into several categories: posture, meaning the inclination of the torso, body language, meaning hand and arm gestures, head and leg gestures, oculesics, meaning the mentioned eye contact.

This aspect represents the vocal effects that follow the words and are found in the speaker's voice, such as tone, breathiness, volume, pitch intonation, stress, rhythm and tempo. Here, there are slight differences in perception between our participants, with Montenegrin respondent P1 commenting on these differences in the following way: ‘Montenegrins are definitely louder, which usually gets moderated during business meetings’, P2 adding that ‘we are louder and talk faster, then our partners from Slovenia seem more professional, because they talk more calmly’. On the other hand, P4 explained these perceived differences with ‘historical circumstances, which have made Montenegrin people to be louder and to fight for their rights and for their freedom’. Slovenian respondent P7 saw these differences arise from ‘Italian influence, which have not been so present in the part of Slovenia, from which he comes from’. He sees Montenegrin business partners as ‘more talkative, louder and fast-speaking’ which sometimes can be perceived as ‘rushing with things’. P8 commented that, ‘there is a difference between professional and informal conversation and sometimes they do overlap, especially in Montenegro, people definitely have more rhythm and talk faster’.

What is meant by this is the general attractiveness (hairstyle, dress, artefacts), body figure and height, breath and odours. Montenegrin P1 talked about dress code in their company, where ‘it is very casual in some sectors, while in my position it is important to wear suit and tie, because we do have a lot of formal meetings’. P2 talked about having a strict dress code in the company, which ‘is also evident in the partner company from Slovenia, whenever we travelled to Ljubljana for meetings, we observed them in the office meeting rooms and there are no greater differences, maybe we don’t go full dress code every day, but for the meetings definitely’. P3 and P4 worked in the sales department for many years and report on having a strict dress code, and now, on higher positions, it is very important to follow it, no matter for how long they cooperate with Slovenian partners. Regarding the Slovenian partner's dress code and physical appearance, P4 said, ‘our partners are always very nicely dressed, nothing too expensive, modest and classy, whether in formal meetings or later in the informal part, when they come to Montenegro, or we go to Slovenia, it's the same’. On the other hand, Slovenian respondents report on a more relaxed way towards the dress code, where P8 commented: ‘when we don’t have formal meetings, we are more free, but when it comes to meetings, especially international ones, you have to be presentable’, regarding the Montenegrin partners, he says: ‘there are not greater differences, you can see they pay attention to the way they are dressed, I would say we are more relaxed in that way’. P9 commented that there are not greater differences either, sometimes it would happen that ‘partners would choose rather not to wear a tie during meetings, women were always decently and professionally dressed, sometimes maybe seeming to try too hard’. P7 summarised this perspective well, saying that:

we, Slovenians I say, don’t pay that much attention to our casual, day-to-day dressing, which I have noticed while coming to meetings in Montenegro, I mean, I appreciate it, but during meetings we all try to respect some not-said and already established rules, and there aren’t big differences, if we talk about formal meetings only.

This aspect covers the area of touching behaviour, body contact. Regarding this NVC aspect, P1 said that there are definitely differences in general behaviour, however, ‘during meetings, we try to respect other culture, no matter how close it is to us’. P2 explained initial differences with the process of getting to know each other and working together, so that ‘after a while, we all greet each other warmly, hug and are much more relaxed’. P3 had a slightly different perspective, saying that ‘sometimes would happen that we would get along great during formal meetings, even better after during work dinners or drinks, however, after we would go there, it would be as if we have never met before, I don’t know, a strange feeling, I don’t know how to explain it’. P4 commented that there are definitely differences, which ‘fade away with time’ and ‘they become more open with hugging as a way of greeting, it's not something too personal, it's just our normal greet with two or three kisses on the cheeks’. On the other hand, Slovenian respondents see themselves as more reserved when it comes to greeting, especially in comparison to Montenegrin partners, with P7 commenting:

They have this custom of saying Dje si brate to everyone, which in our language could be Živjo, so there are no differences in that way, however, there are differences when it comes to greeting, from the first meeting they hug and kiss, which is not something I am personally used to, it doesn’t mean my co-workers aren’t.

P8 said ‘I think it's normal to greet someone in the meeting cordially, however there is a difference, we will not hug here I don’t know how warmly, but when you go to southern Bosnia, Montenegro, you can see that’. P9 goes in line with P8, saying that ‘you get quickly used to this and when you cross this border of reserved and really get to know each other, it is something completely natural, I work with same people for years now and it is something normal in between us’.

Proxemics presents the way in which people use and perceive personal and social space, which physical distance between people in interaction they consider suitable. P8 commented that, ‘it is normal to sit closer to your business partner, now things have changed, and we don’t know if it's going to go back to the normal, however, in my opinion, this is normal, but Montenegrin partners sit closer to their business partners for sure’. P9 and P7 go in line, saying ‘that there are differences in the beginning, they sometimes can seem intrusive at the beginning, but after a while it all just fades away, more than in comparison to German or Austrian partners’. Montenegrin respondents also comment on the initial wider personal space, which over time narrows down. P1 said, ‘we don’t take our personal space that seriously, however during business meetings we really show respect for other cultures and therefore we try to keep it a professional distance, then with time, it kinds of melts down and we operate as we do in our own country’. P3 commented that there is a difference which ‘is understandable, but then we try to respect it’. P4 reported feeling stressed of paying too much attention to it, however, ‘after some time, we all come to the same level’. P2 summarised Montenegrin perspective by saying:

We are definitely people who love to be side by side, but in the professional world, we adjust quickly and respect one's own personal space, which in the case of Slovenian partners, quickly diminishes as a problem and we all behave as naturally as possible and relaxed, especially with those you work with for years.

This aspect represents the approach and attitude towards the time, the way people perceive and use it. P8 started with feeling surprised ‘that all the bars and coffee shops were full during working hours’, however, most of their Montenegrin partners and co-workers do have the value of time and respect the deadlines, which is important in their job, where many projects develop simultaneously and the key is in good organisation and deadlines. P9 went on to describe Montenegrin partners who in the majority ‘have effective attitude towards time in general, however there are some who take on more the attitude ‘from today to tomorrow’ and this can cause problems in the workflow’. P7 elaborated on this: ‘They definitely have a more relaxed attitude towards time and are more flexible with it. It happens many times that they call and arrange the meeting for some other time’, adding to it:

meetings in Montenegro last much longer, we here don’t have that custom of offering coffee to people when they come, it's not that one needs it urgently, but not even a glass of water ... I don’t think it goes for saving money, in Germany maximum they’ve done is to take you to the coffee vending machine to buy it yourself. This wasn’t a habit in Slovenia ten years ago and it never happened to me when I was somewhere in former Yugoslavia. I think it's part of the basic culture, manners, it's a way to cross those first barriers of communication, I mean, you don’t need it, if you know the person, however it is something normal to me, I don’t know. It happened to me many times that I was in a hurry and they (Montenegrins) were like ‘relax, we’ll sort it out, don’t worry’, ‘don’t worry, it will all get arranged’, so yes, there are definitely differences, especially now.

Montenegrin respondents have a different view on this – P2 says, ‘we have become more Slovenian in this way, we work a lot with Western partners and this has made us be more strict with our time and deadlines’. P1 also said ‘we have adjusted well, I think, there is no negative feedback about our dealing with deadlines or time, not within the business context, I don’t think so’, which also goes in line with P3's opinion. P4 reported on the differences in general, but which are not so evident in the business meetings, because ‘Slovenian partners show level of relaxation when they come to Montenegro, they take their time in both formal and informal parts of the meetings’.

Location of business meetings, whether they are held in the office or in more informal places, such as restaurants or bars, is an important aspect of NVC which shows the professional attitude towards business meetings and work in general. Regarding this aspect, both cultures overlap in the majority; P1 said, ‘we usually have first part of the meeting in our offices then we leave for work lunch or sometimes in work dinner, which is more of informal nature’ and when they go to Slovenia, ‘it is the same, we are always welcomed in a very nice way’. P2 and P4 reported the same: ‘there are always both formal and informal part of the visit, whether in Slovenia or here in Podgorica, formal is in our office and then we go for some lunch’. P3 also mentioned day trips organised for guests, on both locations ‘visiting wonderful places like Bled lake, where we had lunch and then we reciprocate by organizing day trips to Skadar lake or Cetinje, or Boka Bay’. Slovenian respondents report that there are no differences, ‘we all have the same attitude, first organizing meeting in the office and then lunch or dinner, or even both, depending on time’ as P9 reported. P8 said ‘there is always this parole, business then pleasure and it applies to both countries, and I haven’t seen any greater differences’. P7 added to this: ‘I’ve always felt more than welcomed and meetings were usually done quickly in the office so that later we can continue with more informal talk during lunch, where we also discuss some work issues, therefore I would say there are no differences compared to here’.

Limitations of the research of the impact of the cultural differences on the NVC during business meetings could be found in the small sample size. Nine respondents from both countries can be seen as a small number, but for the purpose of this research, it was decided on this number in order to dive in-depth the NVC topic. Owing to the pandemic, all interviews and research were conducted online, which has its own limitations. Besides, the amount of time available for conducting the research and analysing data were also limited, and because of that, it was important to choose respondents with a high level of intercultural experience, mostly leaders of the sector or of the company in order to gain as much information as possible. Choosing the right respondents was not a simple linear process, with the factor of online communication; therefore, it is important to acknowledge that information could significantly differ if other respondents were chosen. Another limitation was also the personal bias, since most of the respondents were chosen from the same company but from both the Slovenian and Montenegrin sectors. Snowball technique, in spite of several great advantages, also puts some visible pressure on the participants, and there is a point at which social desirability should be taken into account.

Another limitation can also be found in choosing only two countries to compare, but due to the researcher's personal experience and knowledge, Montenegro and Slovenia were decided on as pre-research perceived it as significantly different, basing this perception on numerous stereotypes about both, present in societies. However, as the respondents and the research show, they are not as different as the media sometimes represents. However, these limitations lead one to think whether the results would differ if other ex-Yugoslavian countries were included in this research. It is recommended to conduct more empirical research related to the business culture analysis, verbal and NVC in the geographical region.

Overall, the research could be further expanded and developed in the future, as it should be, in order to gain more complete knowledge of the NVC phenomenon in intercultural business partnerships and teams. This research can serve as a basis for further development and possible solution-finding, forming specific strategies which would help prevent intercultural conflicts within the business context. Consequently, these results and solutions can be used to prepare a handbook or a workshop for human resources (HRs) and other staff in the organisations which cooperate internationally, in order to ease the process of onboarding of new international employees or to ease the initial steps of building intercultural business partnerships.