Internationalisation Behaviour Using the of Ranbaxy
Traditionally involved in the manufacturing of pharmaceuticals and active pharmaceutical ingredients, it is making advances in researching new innovative drugs internationally. Ranbaxy has branched out in four global regions, namely India/Middle East, Europe/CIS/Africa, Asia-Pacific and North/South America. Forty countries encompass its marketing arm, buying Ranbaxy products. India being its biggest domestic market, its other big markets are China, Russia, the UK, Malaysia, Vietnam and the US.
In international business, multinational pharmaceutical firms’ behaviour has been analysed and discussed by Jiang (2003). Firms have behaved differently in FDI mode, according to their share of ownership. Jiang has categorised the firms with less than 50% share of ownership – called minority joint-ventures (Minority-JV), firms with an equal share of ownership (Equal-JV), more than 50% share of ownership (Majority-JV), and firms with 100% share of ownership (SV). The entry mode behaviour of firms with sole venture (SV) differs from firms opting JV mode, and it was also observed that the behaviour of JV firms was not similar, which hinted the suitability of each category of JV as an alternative to SV entry mode.
Many earlier studies (Jiang, 2003) on multinational’s behaviour had focused on “market imperfection theory”, “location-specific advantage theory”, “internalization theory”, “transaction cost theory”, “strategic behaviour approach”, and “resource-based theory”. Off late, there have been attempts to interweave a number of theories into one structure, named as “eclectic paradigm” by Dunning, according to which three factors played important role in deciding the choice of mode – ownership related factors of a firm, location-related factors of a market, and internationalisation advantages of incorporating proceedings within a firm. Hill, Hwang and Kim  formulated their “eclectic theory of the foreign entry mode choice” .by integrating transaction cost theory, internalisation theory and strategic behaviour approach. .