ABSTRACT
The fourth chapter describes and explores the development of different supply firms from Germany within the value chain of Volkswagen. It provides in-depth insights into six different suppliers from Germany, with different positions along the value chain, from turn-key supplier over innovative and developing suppliers to suppliers of relatively simple and undifferentiated products. The findings highlight the different roles the supply firms can have. Large turn-key suppliers can play a similar role as Volkswagen with a similar influence over its supply base, mimicking the approach to procurement, while other large firms are found to lack the power or orchestrating capabilities to influence their supply base in the same manner. Developing and innovating suppliers can build strong positions in the value chain despite being relatively small and focused on a few particular products, while producers of relatively undifferentiated products struggle to develop a powerful position. Finally, the case studies explore the upgrading trajectories of some of the firms, from parts producers to sub-assemblers that supply Volkswagen with modularized components.
