Impact Investing: Review and Research Agenda

How can practitioners harness impact investing research?

The study Impact Investing: Review and Research Agenda by Anirudh Agrawal and Kai Hockerts provides a comprehensive analysis of the current state and future directions of impact investing research.

This systematic review addresses the lag in academic research following the rapid growth of impact investing. Its main results and implications include:

• The field of impact investing is transitioning from a pre-paradigm stage to a more mature phase of scientific inquiry, with a significant increase in empirical studies in recent years (the paper was published in 2021).
• Impact investing is defined by six characteristics: capital invested, degree of engagement with the investee, selection process, balance of social and commercial outcomes, outcome reporting, and the role of government.
• Academic work in impact investing has historically mostly been exploratory but is now shifting towards confirmatory studies employing rigorous methodologies to assess the consequences of impact investing.
• Further research into the selection processes, stakeholder management, opportunity recognition, and performance reporting is critical to advance the field and generate applicable knowledge.

This study highlights the need for more confirmatory research and methodological rigour in the field. It gives practitioners insights into effective practices and areas needing attention, such as stakeholder engagement and performance measurement.

The study's major reliance on English-speaking literature sources potentially biases it towards more frequently cited works. This approach could overlook significant contributions in less visible publications or non-English research.