How Creativity Shapes International Entry Decisions: A Microfoundations View

Executives should not choose foreign entry modes solely by crunching hard data. We explain how managerial creativity enhances entry decisions through a five-step cascade, evolving from individual ideas to optimized organizational decisions. Individual creativity triggers organizational sensemaking and cross-functional dialogue, leading to multiple viable entry options. Rather than treating foreign entry as a process focused on optimizing cost, risk, and control, some firms adopt a creativity-based approach, yielding more effective alternatives. We conclude with actionable guidance for activating creativity early, treating it as a developable skill that combines analysis with collaborative imagination, prototyping, and learning loops to improve internationalization decisions under uncertainty.