ABSTRACT
Kolektor is not a typical case of indirect outward foreign direct investment (FDI). It is an example where through a very ambitious strategy a Slovenian company acquired, via a joint venture with a German company, enough technological, marketing and other knowledge to develop its own firm-specific advantages and started to internationalize its activities globally. The Idrija municipality established Kolektor in 1963. Kolektor's initial strategy was to acquire technology from abroad pursuant to long-term technological contracts and when allowed by a joint-venture contract with a foreign partner. Kolektor is particularly successful in the development and creation of machinery and tools. The core abilities of Kolektor are based more on the craft skills of the employees than on patents. Such competitive advantages are difficult to imitate. In spite of the generally very good results with internationalization, Kolektor has a negative acquisition experience in Brazil.
