Economic inclusivity through networked SME production : a case study in Kenya

As global manufacturing systems shift towards flexible and small-batch production, product developers and policy-makers have an opportunity to encourage more inclusive industrialization strategies. It is hypothesized that networks of informal-sector producers can provide an effective and ethical model for production; yet, due to a lack of research into these possibilities, both product developers and policy-makers are unaware of the latent potential. This thesis addresses the gap by analyzing a globally-competitive firm comprised of informal-sector producers, and making comparisons with other manufacturing models across both the developed and developing world. The author develops a categorization system for better understanding the costs and benefits of each model, and creates a framework to explain how new product developers evaluate key tradeoffs in making manufacturing decisions. The author then explores the prospect of creating a "virtual factory" of distributed microfactories through a case study of the ethical jewelry producer Soko in Nairobi, Kenya. Soko coordinates brass, horn, and bone jewelry production across 2500 craft microfactories, and its wares are cost-competitive with mid-tier jewelry brands in major retail stores worldwide. Soko's overall effectiveness is analyzed through quantitative analysis of the company's finances and impact reports, in-depth interviews with the company's co-founder, and field research in Nairobi. The tradeoffs inherent in Soko's production model are evaluated through the lens of the aforementioned decision-making framework. Key questions include, can artisanal microfactories compete with large-scale automation and industrialization? In what cases might smaller-scale production have an advantage over larger-scale models? Under the right circumstances, the case of Soko proves that networked microfactory production can be both cost-competitive (especially when handmade qualities are accentuated) and ethical; Soko creates opportunities for advancement across its network of artisans, who maintain ownership over their means of production. It is concluded that systems such as Soko's can provide a model for socially-inclusive production strategies that build upon informal infrastructure. Even if Soko itself only impacts a small number of full-time artisans, a series of ethical, aggregating producers like Soko could collectively provide a larger-scale benefit.

Department dc:contributor.department

Massachusetts Institute of Technology. Institute for Data, Systems, and Society.

Grantor dc:publisher

Massachusetts Institute of Technology

Year dc:date.issued

2018

Author dc:creator

• Waldman-Brown, Anna

Advisor dc:contributor.advisor

• Fiona E. Murray and Georgina Campbell Flatter.

• Institute for Data, Systems, and Society.
• Technology and Policy Program.

Statement dc:rights

• MIT theses are protected by copyright. They may be viewed, downloaded, or printed from this source but further reproduction or distribution in any format is prohibited without written permission.

Licence dc:rights.uri

• http://dspace.mit.edu/handle/1721.1/7582

Language dc:language.iso

eng

Handle dc:identifier.uri

http://hdl.handle.net/1721.1/117784

OAI identifier oai:identifier

oai:dspace.mit.edu:1721.1/117784