How to doing business in Estonia ?

In this part the social- cultural aspects are treated. This very important fact is often forgotten when one is doing business with in a foreign country. It is crucial for a company to do specific research about the culture.  

(Source: [1])

Most of the Estonians are able to speak Russian, Finish and English fluently. Some of them also speak German and Swedish very well. Estonians like to be compared with the Scandinavians. They do not appreciate it when people see them as Russians, because of their Soviet history.

When they meet people for the first time they always use their surname. After they get to know them in a formal way, Estonians will starting using their first name. Most of the Estonians are calling their colleagues with their first name, even when they are from different levels of seniority. 

(Source:[2])

A silence in a conversation is acceptable in Estonia if the persons haven’t something to say. It is rude to interrupt or finish  someone else’s ideas. People can only say something, when they are sure that the other person has finished talking.

Estonians are punctual like Scandinavian. That can be positive and negative, because it gives structure in an organization, but the spontaneity can be gone. In an organization the authority is centralized. 

(Source: [3])

Some parts of the Estonian culture were investigated by Hofstede [4]. The estimated values which came forward from the research are here to be seen:

Country	PDI	IDV	MAS	UAI	LTO
Estonia	40	60	30	60	Low

Estimated values investigated by Hofstede for Estonia (Stats Source: [5])

PDI: Power distance index

Estonia scores low in the Power Distance Index, compared to the world Average of 55. This means there is a big equality between societal levels, including government, organizations and within families. Power is not that important and this score means that they create a more equal cultural environment. 

IDV: Individualism

Estonia is more an individualistic country than a collectivistic country. Everyone is expected to look after themselves and their direct family circle. People are taking care of themselves and they are making decisions based on their individual needs. 

MAS: Masculinity

Estonia scores low in this index and that means it is more feminine than masculine. In business there is a smaller gender wage gap, this means that men and women are paid more equal. More women are in management and there is a preference for fewer working hours.

UAI: Uncertainty avoidance

Estonia scores average in this index, but it tends more towards high uncertainty avoidance. Estonians are feeling more uncomfortable in unstructured situation. They try to minimize the possibility of such situations by strict laws and rules, safety and security measures. [6]

LTO: Long-term orientation

Estonia has a low long-term orientation.14 This means that the emphasis lies with quick results. Status is not a big issue in relationships. Protecting how other people look at them is important and the most important one, respect for tradition.[7]

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[6] Allemaal andersdenkenden, Gert Jan Hofstede & Geert Hofstede (Oktober 2004). Uitgeverij Contact.