Primarily in emerging economies, base-of-the-pyramid markets are highly impoverished contexts in which individuals live on approximately $1-2 per day, accounting for 70% of the world’s population. In base-of-the-pyramid markets, formal institutions are often not well developed and are contexts characterized more accurately as formal institutional voids. Informal institutions can provide a substitute framework to guide transactions in contexts of formal institutional voids, yet norms can marginalize certain categories of individuals (e.g., based on gender, ethnicity, etc.), exacerbating the challenges in base-of-the-pyramid markets. Drawing on institutional theory, network theory, and development research, we examine how gender differences, network composition, and formal institutional voids interact to influence the performance of microentrepreneurs.
Webb, Justin W.; Davis, Blakley C.; and Yu, Xiaoyo
"MICRO-ENTREPRENEURSHIP IN BASE-OF-THE-PYRAMID MARKETS: THE INFLUENCE OF FORMAL INSTITUTIONAL VOIDS, MARGINALIZATION, AND NETWORKS (INTERACTIVE PAPER),"
Frontiers of Entrepreneurship Research: Vol. 36
, Article 11.
Available at: https://digitalknowledge.babson.edu/fer/vol36/iss12/11