Seesaws or Swings? Navigating Valuation Practices and the Interplay of Financial and Impact Values in the Impact Investment Process

Impact investing, navigating the spectrum between financial returns and positive societal and environmental impact, captivates scholars exploring hybrid organizations. Existing research highlights the conflict between finance and impact logics, emphasizing the crucial role of impact measurement practices. However, a gap exists in understanding the practical implementation of impact investment practices within organizations, particularly in integrating impact and financial considerations at each cycle stage. This study, adopting a life-cycle approach, scrutinizes Denmark-based impact investment organization’s practices. Initial findings, amid ongoing data analysis, reveal screening standardization, dual E&S assessment, monitoring indicators linking financial and impact value, and responsible exit as practices blending values. Members perceive financial and impact value as mutually reinforcing, forming a cognitive mechanism for generating blended value. This research contributes a nuanced understanding of hybrid practices in impact investing.