Location choices at the subnational level perspective: the case of the Volkswagen Group in BRIC countries

Abstract

This study analyses the location choices of the Volkswagen Group (VWG) in BRIC countries built on entry and subsequent investments. Based on the internationalisation theories of the Uppsala model and the Eclectic Paradigm, this study performs a qualitative analysis applying a case study approach. We collected data from archival sources including corporate documents and official reports. The results revealed a partial support for the Uppsala model, while the Eclectic paradigm combined with an institution-based view explain VWG's location choices. Most importantly, the findings demonstrate that when examining a firm's entry and subsequent investment into international markets, institutional aspects must be explored in depth not only at the country level, but especially from a subnational level perspective, since the operation in fact occurs in this specific location.