IDEAS home Printed from https://ideas.repec.org/a/bla/devchg/v52y2021i4p878-901.html
   My bibliography  Save this article

Remote (Dis)engagement: Shifting Corporate Risk to the ‘Bottom of the Pyramid’

Author

Listed:
  • Kate Roll
  • Catherine Dolan
  • Dinah Rajak

Abstract

Untapped markets are often deemed institutional voids, terra incognita ripe with economic possibility. The conversion of institutional voids into viable markets has become the ambition of many corporations today, which view marginal and under‐served areas such as urban slums as opportunities to achieve the dual aims of market growth and poverty reduction, particularly through ‘bottom of the pyramid’ (BoP) programmes. This article examines how firms manage institutional voids and the consequences of these approaches for workers through a case study of a BoP ‘route to market’ programme designed by a global food manufacturer in Kibera, Africa's largest slum, located in Nairobi. Instead of engaging with Kibera by upgrading informal markets or generating formal employment, the corporation focused on harnessing existing informal systems through composite arrangements of NGOs, social networks and informal enterprises, a strategy the authors term ‘remote (dis)engagement’. The article describes the logics and outcome of this strategy of formal engagement with informal markets, concluding that the BoP business model depends on ‘gig practices’ of flexibility, irregular work and insecurity to realize the much‐heralded ‘fortune at the bottom of the pyramid’.

Suggested Citation

  • Kate Roll & Catherine Dolan & Dinah Rajak, 2021. "Remote (Dis)engagement: Shifting Corporate Risk to the ‘Bottom of the Pyramid’," Development and Change, International Institute of Social Studies, vol. 52(4), pages 878-901, July.
  • Handle: RePEc:bla:devchg:v:52:y:2021:i:4:p:878-901
    DOI: 10.1111/dech.12669
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/dech.12669
    Download Restriction: no

    File URL: https://libkey.io/10.1111/dech.12669?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Bear, Laura, 2013. "The antinomies of audit: opacity, instability and charisma in the economic governance of a Hooghly shipyard," LSE Research Online Documents on Economics 52597, London School of Economics and Political Science, LSE Library.
    2. Allen Hai Xiao & Kudus Oluwatoyin Adebayo, 2020. "Cohabiting commerce in a transport hub: Peoples as infrastructure in Lagos, Nigeria," Urban Studies, Urban Studies Journal Limited, vol. 57(12), pages 2510-2526, September.
    3. Kate Meagher, 2018. "Cannibalizing the Informal Economy: Frugal Innovation and Economic Inclusion in Africa," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 30(1), pages 17-33, January.
    4. Gulyani, Sumila & Talukdar, Debabrata, 2010. "Inside Informality: The Links Between Poverty, Microenterprises, and Living Conditions in Nairobi's Slums," World Development, Elsevier, vol. 38(12), pages 1710-1726, December.
    5. Johanna Mair & Ignasi Marti & Marc Ventresca, 2012. "Building Inclusive Markets in Rural Bangladesh : How Intermediaries Work Institutional Voids," Post-Print hal-02276707, HAL.
    6. Shuchita Sharmin & Niaz Ahmed Khan & Ataur Rahman Belal, 2014. "Corporate Community Involvement In Bangladesh: An Empirical Study," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 21(1), pages 41-51, January.
    7. Johanna Mair & Ignasi Marti & Marc Ventresca, 2012. "Building Inclusive Markets in Rural Bangladesh : How Intermediaries Work Institutional Voids," Post-Print hal-02312706, HAL.
    8. Hahn, Rüdiger & Gold, Stefan, 2014. "Resources and governance in “base of the pyramid”-partnerships: Assessing collaborations between businesses and non-business actors," Journal of Business Research, Elsevier, vol. 67(7), pages 1321-1333.
    9. Wood, Geof, 2003. "Staying Secure, Staying Poor: The "Faustian Bargain"," World Development, Elsevier, vol. 31(3), pages 455-471, March.
    10. Gerald Friedman, 2014. "Workers without employers: shadow corporations and the rise of the gig economy," Review of Keynesian Economics, Edward Elgar Publishing, vol. 2(2), pages 171-188, April.
    11. Danielle A. Chmielewski & Krzysztof Dembek & Jennifer R. Beckett, 2020. "‘Business Unusual’: Building BoP 3.0," Journal of Business Ethics, Springer, vol. 161(1), pages 211-229, January.
    12. Michael Huber & Henry Rothstein, 2013. "The risk organisation: or how organisations reconcile themselves to failure," Journal of Risk Research, Taylor & Francis Journals, vol. 16(6), pages 651-675, June.
    13. Mark Kear, 2016. "Peer lending and the subsumption of the informal," Journal of Cultural Economy, Taylor & Francis Journals, vol. 9(3), pages 261-276, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mariana Voros Fregolente & Marly M. Carvalho, 2023. "Exploring BoP Generations through Business Model Innovation Lens: A Review and Framing," Sustainability, MDPI, vol. 15(17), pages 1-37, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ault, Joshua K. & Spicer, Andrew, 2022. "The formal institutional context of informal entrepreneurship: A cross-national, configurational-based perspective," Research Policy, Elsevier, vol. 51(9).
    2. Ritchie, Holly A., 2016. "Unwrapping Institutional Change in Fragile Settings: Women Entrepreneurs Driving Institutional Pathways in Afghanistan," World Development, Elsevier, vol. 83(C), pages 39-53.
    3. Amanda Haarman & Marcus M. Larsen & Rebecca Namatovu, 2022. "Understanding the Firm in the Informal Economy: A Research Agenda," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 34(6), pages 3005-3025, December.
    4. Ernst Verwaal & Martin Klein & Jefferson Falce, 2022. "Business Model Involvement, Adaptive Capacity, and the Triple Bottom Line at the Base of the Pyramid," Journal of Business Ethics, Springer, vol. 181(3), pages 607-621, December.
    5. Alaa Chaabo, 2022. "Semantic Multiplicity : How Lexical Ambiguity Elicit Imperfect Organizational Discourse Sustaining Category Ambiguity In Case of NPD," Post-Print hal-04090505, HAL.
    6. Meagher, Kate, 2015. "Leaving no-one behind? Informal economies, economic inclusion, and Islamic extremism in Nigeria," LSE Research Online Documents on Economics 62140, London School of Economics and Political Science, LSE Library.
    7. Meagher, Kate, 2019. "Working in chains: African informal workers and global value chains," LSE Research Online Documents on Economics 91590, London School of Economics and Political Science, LSE Library.
    8. Meyer, Camille, 2020. "The commons: A model for understanding collective action and entrepreneurship in communities," Journal of Business Venturing, Elsevier, vol. 35(5).
    9. Nathaniel Boso & Joseph Amankwah-Amoah & Dominic Essuman & Oluwaseun E. Olabode & Patience Bruce & Magnus Hultman & James Kofi Kutsoati & Ogechi Adeola, 2023. "Configuring political relationships to navigate host-country institutional complexity: Insights from Anglophone sub-Saharan Africa," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 54(6), pages 1055-1089, August.
    10. Adomako, Samuel & Amankwah-Amoah, Joseph & Donbesuur, Francis & Ahsan, Mujtaba & Danso, Albert & Uddin, Moshfique, 2022. "Strategic agility of SMEs in emerging economies: Antecedents, consequences and boundary conditions," International Business Review, Elsevier, vol. 31(6).
    11. Bucher, Silke & Jäger, Urs & Prado, Andrea M., 2016. "Scaling private health care for the base of the pyramid: Expanding versus broadening service offerings in developing nations," Journal of Business Research, Elsevier, vol. 69(2), pages 736-750.
    12. Agarwal, Nivedita & Chakrabarti, Ronika & Brem, Alexander & Bocken, Nancy, 2018. "Market driving at Bottom of the Pyramid (BoP): An analysis of social enterprises from the healthcare sector," Journal of Business Research, Elsevier, vol. 86(C), pages 234-244.
    13. Miguel A. Montoya & Mauricio Cervantes, 2022. "The Role of Regulation in the Development and Internationalization of Social Firms," Sustainability, MDPI, vol. 14(12), pages 1-21, June.
    14. Sven Horak & Yuliani Suseno, 2023. "Informal Networks, Informal Institutions, and Social Exclusion in the Workplace: Insights from Subsidiaries of Multinational Corporations in Korea," Journal of Business Ethics, Springer, vol. 186(3), pages 633-655, September.
    15. Chatterjee, Ira & Cornelissen, Joep & Wincent, Joakim, 2021. "Social entrepreneurship and values work: The role of practices in shaping values and negotiating change," Journal of Business Venturing, Elsevier, vol. 36(1).
    16. Dorado, Silvia & Ventresca, Marc J., 2013. "Crescive entrepreneurship in complex social problems: Institutional conditions for entrepreneurial engagement," Journal of Business Venturing, Elsevier, vol. 28(1), pages 69-82.
    17. Silvestre, Bruno S., 2015. "Sustainable supply chain management in emerging economies: Environmental turbulence, institutional voids and sustainability trajectories," International Journal of Production Economics, Elsevier, vol. 167(C), pages 156-169.
    18. Soliman, Salma & Papanastassiou, Marina & Saka-Helmhout, Ayse, 2023. "The role of subsidiaries in Global Value Chains (GVCs): An institutional voids perspective on LVC upgrading and integration," Journal of International Management, Elsevier, vol. 29(2).
    19. Ralph Hamann & Lulamile Makaula & Gina Ziervogel & Clifford Shearing & Alan Zhang, 2020. "Strategic Responses to Grand Challenges: Why and How Corporations Build Community Resilience," Journal of Business Ethics, Springer, vol. 161(4), pages 835-853, February.
    20. Mikkel Kruuse & Kasper Reming Tangbæk & Kristjan Jespersen & Caleb Gallemore, 2019. "Navigating Input and Output Legitimacy in Multi-Stakeholder Initiatives: Institutional Stewards at Work," Sustainability, MDPI, vol. 11(23), pages 1-27, November.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:devchg:v:52:y:2021:i:4:p:878-901. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0012-155X .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.