Building Technological Capabilities of Local Auto Parts Firms under Contrasting Industrial Policies: A Comparative Study of Malaysia and Thailand 1960-2000.

This study deals with technological capability building of local auto parts firms in Malaysia and Thailand during the period 1960-2000. Malaysia introduced a national car programme in 1985 while Thailand has maintained its liberal economic policy and relies on foreign multinational automakers to operate in the country. The study focuses on an empirical survey of 41 and 42 local auto parts firms in Malaysia and Thailand respectively. As a result of different industrial policies, the findings of this study also indicate that large independent auto parts firms in Thailand have built very strong minor change capabilities whereas the Malaysian large auto parts firms have relied totally on the OEM production system