Thesis
Entrepreneurial ghosting at the base of the pyramid : three articles on the evolution of microentrepreneur – multinational enterprise (MNE) relationships, and the role of open system intermediaries (OSIs) in informal entrepreneurial networks (IENs)
- Creator
- Rights statement
- Awarding institution
- University of Strathclyde
- Date of award
- 2026
- Thesis identifier
- T17971
- Person Identifier (Local)
- 201965087
- Qualification Level
- Qualification Name
- Department, School or Faculty
- Abstract
- Although Multinational Enterprises (MNEs) claim to support growth in the ‘Global South’, their impact on development in an AI revolution remains uncertain; characterized by power imbalances, inequality, exploitation, and limited knowledge spillovers. Despite these concerns, research has not adequately explored interactions between MNEs and local SMEs, as only a handful of studies explore what transpires between formal and informal actors (see e.g. Adom et al., 2023; Shantz et al., 2013; 2018). There are especially large gaps in understanding of how microentrepreneurs, i.e. small businesses with less than 9 employees, exchange resources with MNEs. As such, researchers call for evidence on how MNEs build cross-sector partnerships with locals (Dembek et al., 2019). In response, this thesis explores central models targeted for growth at the Base of the Pyramid (BoP) i.e. a proportion of our global population that live on less than USD 3,000 per person per year (D. Prahalad, 2019; London et al., 2020; Rosca et al., 2022), through the lens of informality (Marti & Mair, 2009; Williams et al., 2016). Entrepreneurship at the BoP is mostly driven by necessity, and largely characterized by informality i.e. unregistered, legitimate socio-economic activity (Banerjee & Duflo, 2011; Webb et al., 2013) that is legally unrecognized (IMF, 2018). Hence the central research question: How do interactions between local microentrepreneurs and MNEs support or hinder entrepreneurial growth in highly informal settings? The research is organised into three core studies, using an interpretive qualitative design. The data is analyzed by induction following Gioia methodology (Gioia et al., 2013; Grodal et al., 2021). The first paper is a review of BoP literature at the intersection of entrepreneurship and informality, from a sample that spans over 20 years; revealing inconsistencies about MNE presence and entrepreneurial growth, with little attention paid to microentrepreneurs. The second paper explores interactions between microentrepreneurs in Uganda and MNEs in sub-Saharan Africa, revealing dysfunctional relationships such as a perpetual lack of apprenticeships. Subsequently, the third is an in-depth case study of a women-led Open System Intermediaries (OSI), a non-profit that bridges formal & informal actors, showcasing its role in influencing growth; by skilling entrepreneurs and broadening local networks, e.g. via regional pitching competitions. In total, 83 semi-structured interviews were conducted with 55 respondents i.e. 9 representatives of regional MNEs, 21 of microenterprises, 13 of private sector development organisations, and 12 role models in the OSI. Overall, these studies show that divergence between opportunity-based motives of MNEs and needs-based expectations of microentrepreneurs invites non-action or lag between action and response by MNEs; which exacerbates inequitable or non-reciprocal exchange of resources, normative content, or knowledge. Thus, compounding opportunity loss, marked by MNE exits. Owing to institutional inefficiencies, MNEs expand into rapidly widening informal markets, recruit graduates, and lend to SMEs in narrowing formal sectors. Thus, curtailing intended gains. Meanwhile, even the few semi-formal microentrepreneurs with MNE partnerships remain largely underserved, legally unprotected, with no equitable or substantial benefits from these relationships. In contrast, OSIs bridge such ecosystem actors by addressing some of the highlighted challenges and expanding local entrepreneurial networks across the region: to accelerate and replicate success. This thesis makes four key theoretical contributions. First, while Prashantham et al. (2018) and Prashantham & Birkinshaw (2012; 2020) study MNEs and start-ups or SMEs in emerging markets, I shed new light on the dynamics between MNEs and informal microentrepreneurs at the BoP. Second, by building upon Entrepreneurial Networks theory (Aldrich & Zimmer, 1986), I spotlight withheld, delayed, meaningless, and/or non-reciprocal exchange between actors, and term this observed adverse relationship dimension as Entrepreneurial Ghosting. Nuances in countries with similar MNE presence (e.g. Nigeria and South Africa) yet contrasting rates of informality (over 80% and 36% respectively) and antithetically varying local entrepreneurial vibrance are also discussed. Third, contrary to London et al. (2013)’s claim that MNEs contribute towards poverty alleviation, my research finds that although these models spur innovation, owing to weak centrality that perpetuates locals’ lower locus of control in dysfunctional relationships; they negate would-be growth and instigate rampant failure instead, evidenced by them citing poor cost-to-income ratios. Showcasing an OSI (Dutt et al., 2016) that aims at increasing locus of control in Informal Entrepreneurial Networks (IENs), I derive a typology of role formation towards inclusive growth. The study recommends that market-facing OSI models be used by practitioners and policy makers to strengthen microentrepreneur-MNE relationships, or as alternatives to MNEs.
- Advisor / supervisor
- Sahasranamam, Sreevas
- Cairns, Iain
- Lassalle, Paul
- Resource Type
- DOI
- Date Created
- 2025
Relations
Items
| Thumbnail | Title | Date Uploaded | Visibility | Actions |
|---|---|---|---|---|
|
|
PDF of thesis T17971 | 2026-04-29 | Public | Download |
|
|
File | 2026-04-29 | Private |