ABSTRACT
Volatile emerging market environments such as the Philippines represent a key source of operational uncertainty for wholly owned foreign subsidiaries (WOFSs). WOFS performance outcomes can be affected by operational uncertainty associated with unpredictable and elastic policy shifts (Wan and Hillman, 2006), thereby making the conduct of doing business in the Philippines exceptionally diffi cult (Chung and Beamish, 2005). Such uncertainty can have serious consequences for WOFS performance outcomes since regulations established by host governments will often dominate transactions within a specifi c market (Rodriguez, Uhlenbruck, and Eden, 2005).
