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In this chapter, we review relational demography literature underpinned by the similarity–attraction paradigm and status characteristics and social identity theories. We then develop an uncertainty reduction model of relational demography, which describes a two-stage process of uncertainty emergence and reduction in a workgroup setting. The first stage depicts how structural features of the workgroup (workgroup composition) and occupation (the legitimacy of its status hierarchy) induce two forms of uncertainty: uncertainty about group norms and uncertainty about instrumental outcomes. The second part of the model illustrates employees' choice of uncertainty reduction strategies, depending on the type of uncertainty they experience, and the status of their demographic categories. Implications for theory and practice are discussed.

A social identity analysis, based on Hogg's (2000) uncertainty reduction theory, of the emergence and maintenance of ideological belief systems is presented. Uncertainty, particularly self-uncertainty, motivates identification with high-entitativity groups and behaviors that promote entitativity. Under more extreme uncertainty, identification is more pronounced and entitativity can be associated with orthodoxy, hierarchy and extremism, and with ideological belief systems. I develop and describe a social identity and uncertainty reduction analysis of ideology, and contextualize this in a brief discussion of the concept of ideology and in coverage of other contemporary social psychological treatments of ideology, such as social dominance theory, system justification theory, right-wing authoritarianism, belief in a just world, and the protestant work ethic.

Uncertainty-identity theory serves as our guiding theoretical framework to explore subjective uncertainty, especially uncertainty about self and identity, and the ways in which communication within groups provides valuable social identity information to group members as a means to manage subjective uncertainty.

We review and synthesize research in communication science and social identity theory, specifically uncertainty-identity theory, to compare diverse understandings of uncertainty and the identity-shaping function of communication within groups.

Uncertainty inherent in dyadic interactions has received extensive attention in communication science. However, the identity-defining function of communication that flows within and between groups as a means to resolving uncertainty about subjectively important matters has received little attention in both social psychology and communication science.

We explore how communication that flows from in-group sources (e.g., leaders) serves to shape a shared reality and identity for group members while providing a framework for self-definition. We propose an agenda for future research that would benefit from an articulation of the importance of communication in the shaping and management of identity-uncertainty.

Uncertainty arousing rhetoric by influential in-group sources, such as leaders and the media can have serious implications for intergroup relations, as uncertain individuals seek distinctive and tight-knit groups and autocratic leaders under conditions of heightened uncertainty. The role that communication plays in shaping clear and distinct identities as a panacea for identity-uncertainty has implications for the intragroup normative structure of the group and for intergroup relations.

The application of real options theory to international strategy has surged in recent years. However, it is still a relatively new and loosely defined field, and there are several constraints on practical applications of this powerful theory. To move forward this field, the paper first provides a systematic analysis of theoretical and empirical contributions of real options theory to three critical issues in international strategy: (1) valuing multinational networks, (2) assessing market entry modes, and (3) evaluating market entry timing. The paper further suggests that future studies can focus on a refined treatment of uncertainty and the development of a dynamic theory in international strategy. Five testable propositions are developed in these directions.

The evolution of risk management has placed some emphasis on the language of risk management practices. The classic categories risk control and risk financing, as umbrella terms for the range of risk management tools that may be employed, are still widely used – but as has been pointed out elsewhere in this book, the broadening of risk management has led to a reconsideration of the continuing accuracy and usefulness of the older terminology. For example, historically the term insurance-buying was expanded to include risk financing, which allowed recognition of newer, non-insurance tools. Similarly, loss prevention became risk control to include risk reduction, risk distribution, hedging, and more. More recently, risk treatment has emerged as a term that encompasses both the control and financing categories.

One of the significant changes in practice is the inclusion of opportunities that may arise from risks. Here the terminology has not quite kept pace with changes in the field. Additionally, while assessment and analysis has long captured the idea of evaluating risks and uncertainties, the more explicit inclusion of uncertainty, along with emergent phenomena, complexity, and the unknown/unknowable has led to questions about whether risk control meaningfully conveys the essence of these activities. The search for an alternative terminology is ongoing, but for the time being the term adaptive response (AR) is used here, which refers to a range of actions that could be taken to capture the full range of exposures.

Chapters Nine and Ten continue to use the term risk financing. This is more of a concession to practicality as, in any other setting, financial measures logically are ARs. Nevertheless, there are technical and substantive reasons to maintain some separation. But even here, the pressures of change are being felt. For example, while most risk financing arrangements focus on addressing the costs of risk (e.g. indemnifying an organisation for losses), the role of financial measures in encouraging or discouraging certain practices – including paying the risk manager’s salary, or incentivising certain desired practices – has historically not been considered in discussions

In this paper, we suggest a contemporary view of learning during the process of organizational socialization. The relationship between learning and socialization is implicit in much of the existing socialization literature. In an attempt to make this research more explicit, we suggest a theoretical approach to the actual learning processes that underlie workers’ socialization experiences. In order to accomplish this, we review previous work on socialization, information seeking and feedback seeking during socialization, and learning. In doing so we describe the learning process that underlies socialization, highlighting the beginning of the process, the role of information during the process, and integrating three different types of learning (planned, deutero, and meta) into the process of organizational socialization. In addition, we also discuss the implications of these three types of learning during the process of socialization and directions in future research on the socialization process.

We discuss recent developments in real options theory and its applications to strategic management research, examine the potential difficulties in implementing real options in theory and practice, and propose several areas for future research. Our review shows that real options theory has provided substantial insights into investment and exit decisions as well as into the choice of investment modes. In addition, extant research studies have contributed significantly to our understanding of whether and how organizations can benefit from real options. Future research that addresses difficulties in applications will further advance both real options theory and practice in strategic management. We call for future generations of research to enhance the impact of real options as an emerging dominant conceptual lens in strategic management.