Creating Value in International Expansion: Understanding Institutional Constraints and Leveraging Organizational Resources

Abstract

The dynamic nature of international business necessitates a strategic approach to achieve sustainable value creation. This paper supports the hypothesis that understanding institutional constraints and leveraging organizational resources provides the foundation for sustainable value creation during international expansion. These elements provide a solid foundation for firms seeking to expand internationally by enabling them to effectively navigate the complexities of foreign markets. Using the context supplied by Peng (2023), the subsequent sections and subsections delve into critical facets of international expansion, including market integration, the role of entrepreneurial firms, entry strategies, supply chain establishment, multinational strategies, and the impact of global trade and foreign direct investment (FDI).