Beidas, F; (2006) Investigating why Kuwaiti contractors have failed to penetrate the large and complex project market in Kuwait, despite having access to technology/knowledge transfer through the use of joint ventures and sub-contracting. Doctoral thesis , UCL (University College London).

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Abstract

Kuwait is currently experiencing economic boom due to high oil prices, leaving it in the fortunate position of surplus cash being available for major infrastructure and building developments. However, many of these large and complex projects can only be completed by transnational corporations (TNCs). The report investigates why, despite there having been TNC presence in Kuwait for decades, and that many projects have been undertaken through joint ventures and sub-contracting agreements, there still is very little competition from Kuwaiti contractors in the large and complex project market. The lack of managerial and technical capabilities of Kuwaiti contractors is highlighted as a major factor. The report goes on to consider why therefore little technology transfer has occurred between TNCs and Kuwaiti contractors, despite the potential for such transfer having long been available. A number of factors are indicated: The Kuwaiti government's role towards giving generous benefits to nationals is seen to reduce effort, which is vital for a technology transfer strategy. This is further compounded by the fact that Arab culture is typically risk averse, yet transfer technology requires significant investment. From the expatriate's perspective, current labour law, where long term job security is crucial for residency, discourages dissemination of their knowledge.1 Keywords: Technology Transfer, Government Policies, Culture, Incentives.

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