As I’ve been working with dozens of decision-makers from companies all around the world, I am amazed by the differences in business approaches between Europe and Asia. People on every part of the world have their unique looks on business relationships, values and ways of promoting and selling their products/services. All that certainly comes from differences in people’s lifestyles and general looks on things. Let me try and put together a few observations about the differences that stand out.
1. Attitudes to Hierarchy and Decision-Making:
Europe: European business culture, especially in Northern and Western Europe, tends to favor an “All-Are-Equal” approach. Decision-making can be decentralized, with lower-level employees having more input and responsibility. Leadership is often collaborative, and transparency is valued.
Asia: In contrast, many Asian countries emphasize hierarchy and respect for authority. Decision-making is usually centralized, with leaders at the top of the hierarchy making final decisions. There is a strong emphasis on seniority, and employees are expected to defer to those in higher positions.
2. Differences in Communication Styles:
Europe: European communication tends to be more direct, especially in countries like Germany, the Netherlands, and Scandinavian nations. Honesty and clarity are highly valued, and there is less emphasis on reading between the lines.
Asia: Asian communication is often more indirect and nuanced. There is a strong focus on maintaining harmony and avoiding confrontation. Messages are often conveyed more subtly, and non-verbal cues are important in understanding the true intent behind words.
3. Looks at Relationships and Task Orientation:
Europe: In many European countries, especially in Northern Europe, there is a strong focus on task completion and efficiency. Business relationships are important but are often secondary to getting the job done. Contracts and formal agreements are prioritized.
Asia: In Asia, building and maintaining relationships (guanxi in China, nemawashi in Japan) is crucial. Trust and long-term relationships are often prioritized over immediate tasks. Business deals may take longer to close, as time is spent on building mutual trust.
4. Attitude to Risk-Taking and Innovation:
Europe: European companies, especially in Western Europe, tend to be more cautious and risk-averse. There is a strong focus on sustainability and long-term stability. Innovation is valued, but it is often approached methodically.
Asia: While risk aversion is also present in Asia, particularly in Japan, other countries like China and South Korea show a higher tolerance for risk, especially in rapidly evolving industries like technology. Asian businesses may pursue aggressive growth strategies and are often willing to take significant risks to gain market share.
5. The Vision of Work-Life Balance:
Europe: Europeans, especially in countries like France and the Nordic nations, place a high value on work-life balance. There is a strong emphasis on employee well-being, and work hours are often regulated by law.
Asia: In many Asian countries, work culture is more intense, with longer hours and a higher expectation of commitment. This is particularly true in countries like Japan, South Korea, and China, where the work ethic is deeply ingrained in the culture.
6. Time Orientation:
Europe: Europeans generally have a linear approach to time, focusing on punctuality and deadlines. Time management is seen as critical to success, and business meetings are expected to start and end on time.
Asia: In Asia, time is often viewed more fluidly. Relationships and context can take precedence over strict adherence to schedules. In some cultures, such as India or China, flexibility in timing is often expected and accepted.
7. Dealing with Contracts and Agreements:
Europe: Legal contracts are highly valued in Europe, and there is an expectation that all parties will strictly adhere to the agreed-upon terms. Detailed documentation is often emphasized.
Asia: While contracts are important in Asia, the focus may be more on the relationship and mutual trust. There can be a greater expectation for flexibility, and agreements may be more open to renegotiation as circumstances change.
8. Approach to Customer Interaction and Service:
Europe: European businesses often emphasize quality and a high level of customer service. The customer is generally seen as an important part of the business process, and there is a strong emphasis on meeting their needs efficiently.
Asia: In Asia, customer service is often centered around respect and hospitality. The concept of “face” (mianzi in China, kao in Japan) is critical, and businesses go to great lengths to ensure customers feel honored and respected.
These cultural differences immediately come to surface as soon as you start setting up business relationship between companies representing different cultures. Only in case when both negotiating parties are truly interested in each other, a balance of understanding can be reached. However, it remains quite unstable during the whole period of business relationship and a sales person should remain alert at all times to make sure the business relationship lasts long and brings benefits.

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