Value-Added in Non-Financial Support: How Evaluations of Venture Philanthropy Practice of Impact Measurement Affect Its Diffusion

Abstract

Venture philanthropy’s primary goal is to help create and grow stronger and more sustainable social enterprises through the provision of financial resources and non-financial support to the social enterprise, including the development of impact measurement practice. Whereas it is clear how much money venture philanthropy organizations invest in social enterprises, there is less clarity in terms of the value they provide through non-financial support. Drawing on prior work in venture capital and institutional logics we produce this conceptual work in progress essay to identify, test and theorize the factors which affect the value added, of the impact measurement practice for social enterprises under conditions of interdependence to contribute to the theory on practice diffusion in organizational theory.

Keywords: Venture philanthropy; Social venture capital; Impact measurement; Social entrepreneurship; Institutional logics; Value added

JEL Classification: M13