ABSTRACT

Chapter five presents the case studies of the supply firms from the two emerging markets of Brazil and China. The case studies provide insights into four Brazilian and five Chinese companies and explores their catch-up and internationalization strategies. The different development trajectories are reflected in light of the global value chain framework and in relation to the changing orchestration approach of Volkswagen. While some of the supply firms have been able to successfully enter and upgrade within Volkswagen’s value chain, others have been squeezed out by the pressure to globalize, or have been overtaken by foreign competitors. The case studies showcase potential pathways of entry into the global value chain of Volkswagen, and the role of ‘insidership’ upgrading and internationalizing within the value chain.