..., 2008). Thomas Hutzschenreuter can be contacted at: th@whu.edu © Emerald Group Publishing Limited 2014 Prospect theory International diversification Product diversification Foreign competition Strategic response Increased market penetration by foreign rivals, whether...

... the international diversification) of firms. The literature is reviewed using both types of metric, and then both are applied to tests of the regional nature of international business. Findings It is found that the correct method is to use a scale metric which captures the degree of multinationality...

... that an important factor that can influence the international diversification decision is social networks. We hypothesize that both the strength of the ties to international firms and the size of a SME’s international network influence its decision to diversify internationally. Our analysis suggests...