Seesaw or Swing? Balancing Dual Logics Through Micro-Practices in Impact Investing

Impact investing seeks to achieve both financial returns and a measurable social or environmental impact. While existing research emphasizes impact measurement and management (IMM), limited studies explore how impact investors navigate the dual logic of financial profitability and social/environmental impact throughout the investment cycle. Using a single-case study of a Danish impact investment organization, this study adopts a ‘strategy as practice’ perspective to investigate the micro-practices that balance these competing yet complementary objectives. Four key practices—relational, managerial, systemic, and integrative—are identified as central to navigating the tensions and creating alignment between these logics. The findings reveal that balancing impact and profit is not static but requires a dynamic interplay among these practices, which operate collaboratively to address the complexity of impact investing. By contributing to both impact investing literature and institutional theory, this research offers new insights into how micro-practices underpin institutional work and balance competing logics in emerging fields.