FOLLOWING THE HERD AND SLEEPING WITH THE ENEMY: STRATEGIES FOR MANAGING POLICY UNCERTAINTY.

The article discusses research pertaining to managing policy uncertainty in subsidiary corporations. Environmental uncertainty is among the foremost challenges with which an organization's management must contend. The uncertainty concerns the lack of information in an environment, given a specific decision-making scenario. The research indicates that there is no relationship between subsidiary exit in international expansion and political hazards and regime instability. Within particular policy environments, subsidiaries do exhibit differential rates of exit depending on the level and type of experience a firm possesses and the actions of peer firms.