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Impact investing pursues the dual goals of creating socio-economic value for the marginalized, and ensuring net positive financial returns. Impact investing firms achieve their goals through their investments in projects and enterprises which create both social and commercial values. The primary aim of this article is to contribute to our understanding of the process of impact investing, particularly with respect to issues related to aligning impact investing and investee social enterprise goals. The research method employs case-based research methodology. The data consist of six cases of impact investing and their investee social enterprises. In addition, the data involve interviews with experts from the field of impact investing. The findings are that: (1) Social mission plays an important moderating role in the inter-organizational relationship between the impact investor and the investee social enterprise, (2) and an emphasis on due diligence, sector specialization, and communication increases the likelihood of investment while (3) social impact measurement and reporting and frequent engagement increase the likelihood of post-investment alignment. The key contribution of this article is that impact investing (unlike venture capital) is influenced by the ability of its investee to create social value, which plays an important role in the inter-organizational relationship between investor and investee. Furthermore, similar to industry specialization in the for-profit investing, social sector specialization is equally relevant for alignment and returns.
Anirudh Agrawal; Kai Hockerts. Impact Investing Strategy: Managing Conflicts between Impact Investor and Investee Social Enterprise. Sustainability 2019, 11, 4117 .
AMA StyleAnirudh Agrawal, Kai Hockerts. Impact Investing Strategy: Managing Conflicts between Impact Investor and Investee Social Enterprise. Sustainability. 2019; 11 (15):4117.
Chicago/Turabian StyleAnirudh Agrawal; Kai Hockerts. 2019. "Impact Investing Strategy: Managing Conflicts between Impact Investor and Investee Social Enterprise." Sustainability 11, no. 15: 4117.
Impact investing is an emerging alternative asset class. In the last few years, the investment in impact investing has grown many folds, however the research has not kept pace with the growing practitioner interest. The lack of knowledge about the field coupled with the lack of knowledge production of field might be dangerous in the long run. This is a systematic review of impact investing. This systematic review involves study of 85 published articles and reports. This literature was collected using the harzing’s publish or perish academic search engine and cross-checked against databases such as JSTOR and Web of Science. This review has four major contributions. First, the study reveals a unique longitudinal perspective on how the field is evolving and moving from pre-paradigm stage to the stage of proper scientific inquiry. It reveals that the field is evolving, as the reviewed literatures find that a higher number of empirical works were published recently. Second, the field impact investing is unique on six characteristics namely (1) capital invested, (2) degree of engagement with the investee, (3) process of selection, (4) social and commercial outcomes, (5) reporting outcomes, and (6) government role. Third, it reveals that the scholarship in the field has been mostly exploratory. Only recently the field is engaging in confirmatory studies. The research methods have used existing databases or existing single or multiple case studies. Finally, the field has to delve deeper into concepts like selection process, stakeholder management, opportunity recognition, and performance reporting to move the field forward and generate applied knowledge.
Anirudh Agrawal; Kai Hockerts. Impact investing: review and research agenda. Journal of Small Business & Entrepreneurship 2019, 33, 153 -181.
AMA StyleAnirudh Agrawal, Kai Hockerts. Impact investing: review and research agenda. Journal of Small Business & Entrepreneurship. 2019; 33 (2):153-181.
Chicago/Turabian StyleAnirudh Agrawal; Kai Hockerts. 2019. "Impact investing: review and research agenda." Journal of Small Business & Entrepreneurship 33, no. 2: 153-181.
Traditionally the success of a venture capital model has been anchored around two dimensions‚ namely equity as a trade for investment and start-up valuation and profitable exits. Scholars have focused less on the inter-organizational interaction between the venture capital (VC) and start-up entrepreneur. Using some interviews and secondary data from three Indian VC firms, this chapter explores the VC and investee enterprise mentoring within the Indian start-up ecosystem, The data analysis suggests that factors for the best outcomes include VCs that are highly networked‚ intensively sector focused, have entrepreneurs as investors, and that engage frequently with investees over managerial and market issues. Using these cases, this study proposes an antecedent‚ action and outcome model of venture capital enabled entrepreneurial mentoring in India. This model can be expanded in the global context.
Anirudh Agrawal. Venture Capitalist Enabled Entrepreneurial Mentoring: An Exploratory Study. Exploring Dynamic Mentoring Models in India 2017, 89 -107.
AMA StyleAnirudh Agrawal. Venture Capitalist Enabled Entrepreneurial Mentoring: An Exploratory Study. Exploring Dynamic Mentoring Models in India. 2017; ():89-107.
Chicago/Turabian StyleAnirudh Agrawal. 2017. "Venture Capitalist Enabled Entrepreneurial Mentoring: An Exploratory Study." Exploring Dynamic Mentoring Models in India , no. : 89-107.