Business culture in Armenia

Armenia, a country with a rich history and cultural heritage, is a great place to open and do business. Business negotiations in Armenia have some specifics that must be taken into account when doing business in this country.

Armenian culture and worldview contain both European and some Middle Eastern elements. Customs and cultural elements of Europe, the Middle East and the post-Soviet space are intertwined here. In particular, there is a different perception of time and time management, the approach to meeting deadlines is much more relaxed and, as a rule, accuracy and punctuality are not so important. The business environment in Armenia is more conservative. Personal relationships play a huge role here. Armenians try to avoid ambiguity and uncertainty; people are reluctant to accept change and risk. The language is also specific, since the Armenian language forms a separate group in the Indo-European language family (it is not similar to other languages) and also uses its own script.

Greeting

Greetings in Armenia are formal. When meeting a person for the first time, it is customary to address him by title and surname.

The most common greetings between men are handshakes, followed by a kiss on the cheek if the two parties have a close relationship. A simple handshake is usually enough to make a new acquaintance.

In Armenia, women also usually greet each other with a hug and a kiss on the cheek. Even if you are meeting someone for the first time, most Armenian women will kiss you on the cheek.

Business meeting

Meetings can be organized during working hours, less often during non-working hours. They usually take place in the partner's office. It is better to always count on the possible lateness of your Armenian colleague. For younger businesspeople, Western business culture predominates and meetings are held during lunch or during normal business hours. Relevant information materials about past successful projects will help increase confidence among the Armenian partner. It is recommended that the business card include a mobile phone number connected to the communication application, which can be contacted in urgent cases. As for gifts, Armenian partners will appreciate even a modest gift related to your country. Usually these are not large or too luxurious gifts.

In Armenia, with the exception of state and main Christian holidays, meetings can be scheduled on almost any day of the week, including weekends. Standard work hours are Monday to Friday from 9:00 to 18:00, some companies also work on Saturdays. Working hours usually start later in the morning. This always depends on the agreement, but in general it is more advisable to make appointments, for example, from 10:00 or, even better, during the day or evening hours.

As in other countries in the region, a hierarchical management structure prevails here, in which everyone has their place depending on their position. Negotiations are usually led by senior officials. There is a very strong power gap in Armenia; responsibility and decision-making authority are distributed unevenly. Personal relationships play a big role in companies. Armenian partners may also take long pauses during the presentation, veer into other topics, or engage in philosophical reflections. In these situations, it is advisable to actively listen or express agreement in an appropriate manner (e.g., nod, brief comment of approval).

Armenian businessmen are known and trusted for their business skills. Be prepared to protect your own interests and stand up for yourself. This is normal — politely decline the offer if the reasons and arguments are explained. The Armenian side will almost certainly want to reach a consensus solution during the negotiations. You need to be able to react flexibly and have room to maneuver. Armenian partners will appreciate special offers, discounts or other benefits prepared especially for them.

Armenia is generally very proud of its Christian culture and its long history. If you do not engage in criticism of these topics from a cultural-religious point of view, no significant friction should arise. The local market is quite small, so often everyone knows each other very well in each industry. Sometimes it can be difficult to negotiate with several competing companies without it becoming known. On the other hand, this can be useful, since easier communication, for example between companies and authorities, can speed up some processes.

It is necessary to prepare for a different perception of time, more Southern European than Central European. An Armenian colleague may be punctual at the first contact (out of politeness), but not stick to this in subsequent meetings. Various delays may also occur. However, there is no malicious intent or desire for dominance behind this, but simply different cultural practices. Communication via email requires more patience. It may happen that you will wait longer for a response (several days). In this case, you can call, pay attention to the letter sent, explain the urgency of the matter and ask for a quick response.

The opening of a meeting is usually quite formal. Over the course of a meeting, the style and mood change, and in subsequent meetings the atmosphere becomes more friendly, pleasant and flexible. Expressing strong emotions is not common. Sometimes the Armenian side may make compliments to the counterparty in order to get a better offer or make it easier to reach an agreement. Being too friendly can look suspicious and put off potential business partners.

Armenia — A relatively small and compact country, the main difference is between the capital Yerevan and other regions. Outside Yerevan there is more likely to be more friendliness and openness, but also slightly less knowledge of languages, with a preference for Russian.

After the end of the main part of the meeting, the second part may follow. The partner will probably offer the famous Armenian “cognac” or an invitation to dinner with traditional Armenian cuisine. In this case, local Armenian wine and cognac are usually served, and in the restaurant you can also choose beer with your meal. It is not customary to drink too much alcohol (exceeding the norm). The meeting can last for quite a long time due to a series of celebratory toasts. It is also good to prepare at least a short speech.

Dress code

Armenians usually dress formally for business meetings. Men wear suits and ties, while women prefer conservative business attire, such as pantsuits or dresses. It is important to present a professional image to make a positive impression on your Armenian colleagues.

Hierarchy

The hierarchy will be clearly formulated during the negotiations. Regardless of the number of employees participating, as a rule, the meeting is chaired by the director on behalf of the other party, and the remaining employees, after the invitation, express their opinions, for example, on certain areas under discussion. In terms of gender balance, male dominance is more common in Armenia, but there are also some women in leadership positions. The age and gender composition of the team does not play a decisive role; there is no ideal number of team members.

Invitation to visit

Family and home — this is a very personal matter in Armenia, so an invitation home — this is something special. As an expression of trust and intimacy, an invitation to a restaurant for a large dinner or reception with Armenian dishes is more common. The Armenian partner can also offer an excursion trip to one of the many local cultural monuments (a number of popular places are also located near Yerevan). It is advisable to take a small gift with you when visiting, for example, in the form of a box of chocolates (on such an occasion, such a gift is usually expected).

Communication

Armenians are often very educated people. The Russian language is understandable to everyone, at least passively, Armenian businessmen usually speak Russian very well and are comfortable doing business in Russian. Young people especially often prefer English. For personal or policy reasons, they will want to hold meetings in English. Usually questions are asked first and an option that suits both parties is agreed upon. Other foreign languages are less widespread, but thanks to the large Armenian diaspora in many countries of the world you can meet speakers of various, even less widespread languages.

A good knowledge of English is usually typical for foreign (especially Western) companies, banks, law firms, companies in the IT sector or companies focused on trade with countries outside the so-called post-Soviet space. Companies focused on Russia and the post-Soviet space usually use Russian as a working language.

An unpleasant topic that must be avoided at all costs, — previous experience of doing business with colleagues from Azerbaijan or Turkiye. Whatever your experience of communication with these countries, this topic will cause at least mistrust and strong negative emotions on the Armenian side. It is inappropriate to comment on the country's foreign policy, in particular its relations with Azerbaijan and Turkiye.

The middle and older generations often prefer personal communication. Communication by phone and email (or a combination of both) is suitable for the younger generation of businessmen. For greater flexibility, you can also use mobile communication applications (especially Viber, WhatsApp or Telegram), which are popular and often used for business meetings.

Recommendations

In general, prepare for the presence of a dual culture (both European and, rather, Middle Eastern - depending on the specific industry and the age of the representative of the opposing side). This entails certain difficulties, so patience, caution and attentiveness are required. In some aspects of life, the bureaucratic legacy of the USSR is still present in the country, so it is advisable to have documents, seals, and all kinds of confirmations in order. For business documents and signatures, formalities are common (including, for example, notary verification). It may happen that the other party will not be able to answer questions or requests and will limit itself to reporting that something is not working. However, sometimes there may be no objective reason for this — for example, expressing uncertainty is simply inappropriate. In such cases, you need to be patient, try to better explain the essence of the problem and actively offer alternative solutions.