Internationalization is an important strategic approach to firm growth. Through outward foreign direct investment (FDI), a firm can achieve resource reconfiguration and value activity adjustment. This can result in enhanced competitive advantages. This study proposes an analytical framework, formulates hypotheses, and presents an empirical study to evaluate the impact of outward investment on R& D、marketing activities and the performance of Taiwanese firms. From the empirical study, we find that ensuing FDI, Taiwanese firms are enhancing performance through value activity adjustments, for example, by reducing local production lines, enhancing product specialization, improving R& D capabilities, and initiating inter-firm marketing collaborations.