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Remote (Dis)engagement: Shifting Corporate Risk to the ‘Bottom of the Pyramid’
Open accessAbstract
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’.
Overview
CoChat Summary
TL;DR
The article examines Project Insansa, a bottom-of-the-pyramid “route to market” programme run by a global food manufacturer in Kibera, Nairobi, showing how the firm uses NGOs, wholesalers and sellers’ social networks to enter an “institutional void” while shifting physical, financial and social risks onto informal sellers. It argues that this strategy of “remote (dis)engagement” produces adverse incorporation and low-tech gig work rather than formal employment or meaningful market inclusion.
Key findings
- Food Co. did not build formal distribution infrastructure or upgrade informal markets; it leveraged existing informal systems, initially through an NGO partner and later through wholesalers and field officers. After the NGO was dropped, recruitment shifted toward men with established distribution businesses, and the programme, which began with a focus on female empowerment, no longer focuses on gender.
- Sellers are framed as independent “entrepreneurs” or “micro-entrepreneurs,” lack contracts and employee status, are paid on commission, and are excluded from formal benefits and protections. They assume risks for security and access, income and credit, and social protection. The programme has over 700 sellers and accounts for approximately one-tenth of Food Co.’s regional sales; sellers earn approximately US$0.15 per sale, and in 2015–17 earned on average US$55 per month or US$1.90 per day, compared with the lowest urban national minimum wage of 13,572.90 Kenyan shillings or US$126.40 per month.
- The programme became more formalized and professionalized, with “super sellers” making up 25 per cent of participants but generating 66 per cent of sales. The authors conclude that the BoP business model depends on “gig practices” of flexibility, irregular work and insecurity, and that “there is no Project Insansa without precarity.”
- Rather than inclusion on secure terms, the paper characterizes sellers’ incorporation as “adverse incorporation”: they are included in the market on disadvantageous terms, with possibilities for security and accumulation circumscribed by the programme’s design.
Methods
- The authors conducted a three-year interdisciplinary case study of Project Insansa, including seven site visits, participant observation of the selling process, and briefings by local managers.
- Phase I consisted of semi-structured interviews with 73 sellers (42 male and 31 female), field officers, programme managers in Kenya, NGO partners, and Food Co. members involved in the programme’s inception. Phase II, in April 2015, involved 16 photo elicitation interviews, with respondents evenly distributed by gender and between rural and urban sites.
- Additional interviews were carried out with key managers at a sister BoP programme established by Food Co. in a different country. Interviews with micro-entrepreneurs were conducted in Kiswahili or a local language, while interviews with employees and associates at Insansa and Food Co. were conducted in English.
Limitations
- The paper does not include a dedicated limitations section.
- Limitations evident from the text include the single-case design focused on one MNC’s BoP programme in Kibera, which limits generalizability.
- The study relies on interviews, participant observation and company/NGO/manager accounts; the paper also notes that Food Co. does not collect data on security incidents experienced by sellers, viewing security as something workers manage as independent contractors.
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In the paper
“Food Co. co-opts the informal institutional infrastructure of 'remote' areas -social networks, long-standing systems of trust and reciprocity and existing informal market relationsharnessing informal labour markets as part of the value proposition for viable access to informal consumer markets.”
§ Remote (Dis)engagement: Shifting Corporate Risk to the 'Bottom of the Pyramid' > INTRODUCTION
plainstates a causeSingle case- Asserted: passes — The authors put it forward as true.
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In the paper
“Instead, the company draws on existing organizations and individuals within these spaces, tapping into informal systems of 'people as infrastructure' (Simone, 2004: 407).”
§ Remote (Dis)engagement: Shifting Corporate Risk to the 'Bottom of the Pyramid' > INTRODUCTION
What the sources say
- Not checked yetcites Simone, 2004 source
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In the paper
“Drawing on workers' own connections and relationships or 'social capital', spliced together with partnering local NGOs, enables Food Co. to minimize the direct social, managerial and legal costs associated with the programme”
§ Remote (Dis)engagement: Shifting Corporate Risk to the 'Bottom of the Pyramid' > INTRODUCTION
plainstates a cause- Asserted: passes — The authors put it forward as true.
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In the paper
“Paying a separate commission has also enabled Project Insansa to control how much is earned by each sale, as the commission can be increased without affecting either wholesaler or market prices (that is, the margin).”
§ Remote (Dis)engagement: Shifting Corporate Risk to the 'Bottom of the Pyramid' > CASE STUDY: PROJECT INSANSA
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In the paper
“many sellers are similarly dependent on social ties of reciprocity for social protection.”
§ Remote (Dis)engagement: Shifting Corporate Risk to the 'Bottom of the Pyramid' > Social Risk and Protection
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§ Remote (Dis)engagement: Shifting Corporate Risk to the 'Bottom of the Pyramid' > SETTING THE TERMS: SHIFTING PHYSICAL, FINANCIAL AND SOCIAL RISK
“(Chelekis and Mudambi, 2009: 413)”
§ Remote (Dis)engagement: Shifting Corporate Risk to the 'Bottom of the Pyramid' > References
“Chelekis, J. and S.M. Mudambi (2010) 'MNCs and Micro-distributorship in an Emerging Econ- omy: The Case of Avon in the Amazon'”
Rated minor: it would not touch a result — a value no result rests on, a p-value that stays on the same side of the significance level, or a conflict that is clerical, resolved elsewhere in the paper, or outside its own findings.
In the paper
§ Remote (Dis)engagement: Shifting Corporate Risk to the 'Bottom of the Pyramid' > WORKING IN KIBERA: BROKERING ACCESS
“Of those in employment, nearly half are casual employees, often working in Nairobi's industrial or service sectors outside of the slum.”
§ Remote (Dis)engagement: Shifting Corporate Risk to the 'Bottom of the Pyramid' > WORKING IN KIBERA: BROKERING ACCESS
“The other half find work in the informal sector, engaging in small-scale trading or activities in the gig economy, or are unemployed (Gulyani and Talukdar, 2010)”
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Metadata
- Authors
- Roll, K., Dolan, C., & Rajak, D.
- Venue
- Development and Change
- Publisher
- Wiley
- Published
- 2021-06-29
- Volume
- 52
- Issue
- 4
- Pages
- 878-901
- ISSN
- 0012-155X (ISSN-L)
- 1467-7660
- OpenAlex
- W3164892602
- Cited by
- 10
- References
- 83
- Citations by year
- 2026: 2 · 2025: 3 · 2024: 3 · 2023: 2
- FWCI
- 1.15
- Type
- journal article
- Language
- en
- Open access
- hybrid
- doi.org
- Licence
- Locations
- Development and Change (publishedVersion, cc-by-nc-nd)
- SOAS Research Online (SOAS University of London) (acceptedVersion)
- SOAS Research Online (SOAS University of London) (submittedVersion, cc-by)
- UCL Discovery (University College London) (submittedVersion)
- Figshare (submittedVersion, cc-by-nc-nd)
- Sussex Research Online (University of Sussex) (submittedVersion, cc-by-nc-nd)
- Topics
- Social Sciences › Business, Management and Accounting › Business and International Management › Innovation and Socioeconomic Development
- Social Sciences › Business, Management and Accounting › Strategy and Management › Global trade, sustainability, and social impact
- Social Sciences › Business, Management and Accounting › Strategy and Management › International Business and FDI
- Keywords
- bottom of the pyramid, institutional voids, urban slums, informal markets, gig economy, informal employment, poverty reduction, Kibera, informal enterprises, NGO partnerships, social networks, food manufacturing
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