Values and Trust in Business Relationships in Former Yugoslav Markets

The former Yugoslavia has gone through turbulent political, economic and societal changes since 1990. After the 22-million market split into separate countries, numerous differences arose among them. War and political instability also led to many business and economic risks, and therefore slower economic growth. Yet, in the last few years, markets have stabilized and some of them have grown — as that of Slovenia, which also became a member of the European Union (EU). Croatia is expected to follow a similar path soon. These two countries show economic and political stability, as well as economic development and growth comparable to EU countries. This is not yet the case for the rest of the former Yugoslav countries, such as Macedonia, Serbia, Kosovo, Bosnia and Herzegovina and Montenegro. Nevertheless, the former 22-million market is interesting for investors and all those who would like to expand their businesses to this part of Europe, especially as it shows great potential for growth. To enter these markets and to create business relationships within them requires an understanding of the core elements and specifics of the local business culture. The acknowledgement of economic, political and cultural differences between different former Yugoslav markets is a precondition for successful business development, as is an understanding of the meaning of trust, values, commitment and cooperation when doing business with partners in these diversified markets. This is particularly important when companies want to position themselves in these markets over the long term.