CROSS-CULTURAL COMMUNICATION - THE CHALLENGES FACED BY FINNISH ORGANISATIONS IN ESTONIA

Abstract

Relations between Estonia and Finland have been very strong traditionally. Their geographical proximity has facilitated the exchange of goods as well as ideas. Finland has a major stake in the Estonian economy – Finland is Estonia’s number one trade partner. Finnish organizations make up about a quarter of all foreign direct investment in Estonia. The two countries also share very strong cultural ties. Both peoples are of Finno-Ugrian origin, they speak similar languages. Many Estonians speak the Finnish language fluently. Although Estonia is a Baltic state from a geographical point of view, Estonians consider themselves more Nordic than Baltic. Yet, despite these similarities, Finnish companies operating in Estonia face major communication challenges with their Estonian business units. Half a century of Soviet occupation has left its mark. On the one hand it had introduced the lasting legacy of Soviet management style. On the other hand, it has led to widespread prejudice against Estonian businesses, which even fifteen years of restructuring and the adoption of contemporary management practices could not change. Cooperation between Finnish organizations and their Estonian counterparts is cumbersome due to prejudices, taken-for-granted assumptions and miscommunication. This paper analyses the communication problems by examining intra-organizational communication between Finnish parent companies and their Estonian subsidiaries. The findings of this paper are based on a survey conducted with Estonian and Finnish managerial and non-managerial staff. The paper will underline the importance of cultural sensitivity in business communication.Cross-cultural communication; Estonia; Finland; Baltic economies