Abstract
Intentionality and measurable impact are the key characteristics that allow the differentiation of impact investing from conventional forms of investment. Over the past decade, impact measurement has become a common method for evaluating the financial and social return generated by impact investments, and it is relevant for all impact stakeholders, such as impact investors and intermediaries, investees and social enterprises, public administrations and governments. This study was performed to provide an empirical analysis of some practices useful for improving the consistency, effectiveness and applicability of impact measurement. Using a qualitative approach based on a case study analysis, the paper investigates two measurement tools: Social Return on Investment (SROI) and balanced scorecard (BSC). The analysis performed uses various perspectives and concepts, and based on the evidence found, it opens interesting future research directions into the impact measurement field. The findings of this study add to the existing body of knowledge with “insights” for bridging the gap between theory and practice.
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Acknowledgements
The Authors express their gratitude to the Editors—Professors Mario La Torre and Sabrina Leo—for the opportunity to contribute to this book. The Authors would also like to thank the participants of the 5th Social Impact Investments International Conference (Rome, December 2 and 3, 2021) for their inspiring contributions.
NOTES This chapter is the result of a collaboration between the Authors. In particular, Prof. Dr. Annarita Trotta contributed to the sections ‘Impact Measurement Practices in the Impact Investing Field: Challenges, Critical Issues and Perspectives’ and ‘Method and Materials’; Dr. Eugenia Strano contributed to the sections ‘Deepening Practices of Impact Measurement Tools: An Exploration of SROI and BSC’ and ‘Case Analysis’; and Dr. Alessandro Rizzello contributed to the section ‘Discussion and Conclusions’.
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Strano, E., Rizzello, A., Trotta, A. (2023). Impact Investments Measurement: Bridging Research and Practice. In: La Torre, M., Leo, S. (eds) Contemporary Issues in Sustainable Finance. Palgrave Studies in Impact Finance. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-031-22539-0_3
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