Managing informal service organizations at the base of the pyramid (BoP)

Purpose: This paper aims to explore and learn about managerial practices of informal services at the base of the pyramid (BoP). Design/methodology/approach: The study reports findings of an empirical research conducted in 16 cities in Mexico during a two-year period. Managerial practices in 327 micro-businesses were identified and analyzed after conducting direct observation and personal interviews with owners, employees and customers of these BoP informal service businesses. Findings: The paper shows that managerial practices of BoP informal service micro-businesses are developed through a dynamic, integrated network of owner, employees and customers who integrate scarce resources building win-win-win relationships to satisfy their basic daily needs. Practical implications: The creation and management of a BoP informal service business is mainly a matter of satisfying basic needs, aiming to positively transform a community by improving well-being. This paper provides insights to understand those relationships and interactions among the main actors involved, highlighting the need to identify and integrate the BoP service management cycle to better address their needs. Originality/value: This paper proposes a conceptual service management framework for informal micro-businesses at the BoP integrating the owners, employees and customers’ perspectives. Three corresponding cycles are identified and discussed, which are useful to elicit relevant characteristics of key roles, activities, interactions and relationships taking place in informal services.