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Summary The paper reports on an ambitious study in the Thai auto component sector. It reviews as well as extends the important concepts of firm strategy, learning, and capability development as proposed on one hand by development economics and economic historians and on the other by the resource‐based strategic management academics. This study makes three important contributions. First, it studies in considerable detail the development of nine firms, combining the in‐depth case study approach with the comparative analysis potential of multi‐firm studies. Second, it develops an analytical framework based on the concepts and insights of both latecomer firm literature and the strategic management literature (and particularly that from the resource‐based perspective). Third, it aims to not only contribute to conceptual frameworks for research but to develop a framework that can be the basis for practical management strategy. Additionally, the paper also touches on the policy implications as related to nurture firm learning. Finally, the paper outlines an integrated framework for a firm learning system in which there is a dynamic alignment between competitive strategy, learning strategies, learning activities, and learning mechanisms.
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