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Management contracts
Management contracts usually involve a company providing management 
expertise and personnel to assist a foreign company for a fee for an agreed 
period, for example, the provision and/or training of specialist key man-
agement personnel. The advantage is that the providing company receives 
income without much capital investment. An example of this is the manag-
ing by the British Airport Authority (BAA) of airports in Indianapolis, Naples 

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Transfer of Skills, Technology and Knowledge 247
and Melbourne (Daniels, Radebaugh and Sullivan, 2007: 500). Other examples 
include international hotel operations and large computer systems.
In a management contract, the local company will most likely hold all 
of the equity, but in some instances the provider may also hold a small 
amount. This allows the provider to negotiate other terms if required. 
Management contracts are often operated in publicly owned industries, in 
particular, transport, utilities, service industries such as hotels and hospitals, 
food processing and in the petrochemical industry (Brooke, 1996: 89).
Possible barriers to the transfer of skills and knowledge
The most likely barriers to the transfer of skills and knowledge are cultural 
differences and resistance to change and training requirements, but could 
include many of the following points listed in Figure 13.2.
Local cultural sensitivities 
Government interference
Different value systems 
Excessive bureaucracy
Poor project definition 
Communication problems
Language difficulties 
Inappropriate technology
Training requirements 
Lack of specialist skills
Health and safety regulations Environmental concerns/pollution
Resistance to change 
Security problems
Unrealistic expectations
Figure 13.2 Barriers to the transfer of skills and knowledge