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Economics behind the internationalization of Biocon India Ltd

Palakh Jain (Indian Institute of Management-Ahmedabad, Ahmedabad, India.)

Publication date: 14 November 2013

Abstract

Subject area

Economics, business management

Study level/applicability

The case study is relevant for MBA, Master's and under graduate (economics, international and business economics) students.

Case overview

Biocon is one of the top 20 companies from India in the Forbes list of “Best under a Billion” companies. It has emerged from being an enzyme-producing firm to a biotech powerhouse under the guidance of Ms Kiran M. Shaw. It is an innovative company with a varied scientific skill base and progressive manufacturing facilities for developing and commercializing biopharmaceuticals. This study attempts to explore the international foray of Biocon using the eclectic OLI framework. Entrepreneurship, need for integrated business model, innovation, quality control, etc. constituted the ownership (O) factors, important for Biocon to earn the more than compensating advantage in the overseas market. The locational factors were less important in case of Biocon as the global expansion was driven by a motive of either market seeking or cashing in on the cost advantage of its operations. The dominant mode of entry has been the joint ventures. The overseas patterns exhibited by Biocon can be captured fully by the O-L-I framework.

Expected learning outcomes

To understand the economic theory of OLI and the ownership, locational and internalisation advantages, link the OLI framework with the international foray of Biocon, Biocon's internationalization journey, major overseas deals signed and the economic rationale behind the deals.

Supplementary materials

Teaching notes are available for educators only. Please contact your library to gain login details or e-mail support@emeraldinsight.com to request teaching notes.

Keywords

Acknowledgements

This study would not have been possible without the excellent research assistance of Ms Vidhya Unnikrishnan and Mr Debraj Bagchi. The author is greatful for their contribution and sincere efforts.

Citation

Jain, P. (2013), "Economics behind the internationalization of Biocon India Ltd", , Vol. 3 No. 7. https://doi.org/10.1108/EEMCS-08-2013-0163

Publisher

:

Emerald Group Publishing Limited

Copyright © 2013, Emerald Group Publishing Limited

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