This study identifies customer-validated Key Success Factors (KSFs) that enabled a latecomer electronics manufacturer in Lao PDR to successfully integrate into global value chains through the production of high-precision Hard Disk Drive (HDD) components. In response to the demands of Artificial Intelligence (AI)–driven storage and stringent Heat-Assisted Magnetic Recording (HAMR) requirements, the firm meticulously translated challenging customer specifications, such as thermal stability, flatness, and rigidity, into disciplined operational capabilities. The study employed an embedded single-case mixed-methods design, combining elite interviews, anonymized KPI analysis, and customer audit evidence. During qualification, the firm achieved customer accepted yield within a ±1% tolerance band, met documentation compliance on schedule, and consistently maintained On-Time-In-Full (OTIF) delivery at 100%. All customer audits were passed, with corrective actions formally closed. Thematic analysis revealed four interconnected mechanisms that underpinned the firm’s capability upgrading: staged cross-border knowledge transfer with embedded mentors, early codification of standard work, audit-ready KPI governance, and logistics alignment within the constraints of the Special Economic Zone (SEZ). These findings provide a mechanism-based pathway that explains how latecomer firms can achieve operational upgrading and successfully integrate into advanced, audit-intensive electronics supply chains.

Keywords

Heat-Assisted Magnetic Recording (HAMR); global value chains; capability upgrading; customer qualification; Lao PDR