The dark side of impact measurement: complexities and drawbacks

• Published in: Social enterprise journal Vol. 21; no. 2; pp. 318 - 335
• Main Authors: Golbspan Lutz, Fernanda, Delgado, Natalia Aguilar, Petrini, Maira
• Format: Journal Article
• Language: English
• Published: Bingley Emerald Publishing Limited 25.02.2025; Emerald Group Publishing Limited
• Subjects: Business success; Entrepreneurs; Environmental impact; Grounded theory; Investors; Research design; Research methodology; Social change; Social entrepreneurship; Social impact; Social investing; Grounded theory; Social enterprises; Impact measurement
• ISSN: 1750-8614; 1750-8533
• DOI: 10.1108/SEJ-03-2024-0049

Purpose The purpose of this study is to contribute to the discussion surrounding impact measurement on social enterprises (SEs). The findings provide a more nuanced perspective on tensions that often emerge from SEs journeys by presenting the complexities which social entrepreneurs and investors should be attentive to. Design/methodology/approach This research used grounded theory as the means to explore how stakeholders accomplish the requirements for impact measurement, overcoming the challenges that arise in the process. Through 18 semi-structured interviews, the authors develop a conceptual model to better understand how a practice that is often taken for granted might compromise SEs achievements and sustainability in the long term. Findings The proposed model uncovered an unintended consequence of impact measurement: mission drift. The requirements to assess the social impact raise expectations on different actors and create challenges that affect the true purpose of SEs, the delivery of their social mission. Practical implications This study contributes to research and practice. First, the authors develop a theoretical model for social entrepreneurs and social investors to shed light on the hidden consequences of impact measurement. Second, the authors strengthen the knowledge in the field by conducting a study on SEs outside the mainstream Western-centric context. Originality/value The authors enrich the literature by exploring the tensions related to impact measurement in SEs in the Global South and unravel new perspectives on the subject.