Based on a sample of firms - component suppliers to two major automotive manufacturers - in and around the National Capital Region (NIC) of Delhi, this study shows the variation in the learning ability, intention and effort, depended upon the strategy of the firm. The variation is also dependent on whether the firms want to be market leaders, followers or imitators. Depending upon the firm's strategy, efforts are made to build the firm's absorptive capacity. Tiny firms operate basically at the lower end of technology and hence learning is at the operational level and efforts are not made to retain humanpower. The linkage has, however, resulted in learning on productivity improvement through time, inventory and resource management. The firms that have joint ventures with buyers make special efforts to train and retain humanpower. They also have technological collaborations with world market leaders in their respective fields.
