Abstract
The potential for distributing socially-valuable products to previously underserved base-of-the-pyramid markets (BOP) as a means of poverty alleviation has received growing interest within the international business field. However, such business models often struggle with the agency costs that arise between the social enterprise and local sales agents as the legal institutions and technological/physical infrastructure in BOP markets make traditional contractual and monitoring mechanisms difficult and expensive to employ. Using a multi-method quasi-experimental and depth interview design in rural Guatemala, our study suggests that identity-based mechanisms created through role immersion in multi-task settings can efficiently lead to positive spillover effects such as greater effort, risk-propensity, and self-monitoring by agents.
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