PulseExploreJournal ClubDebatesTrendingResearchersJournals
Instagram
HomeExploreJournal ClubTrending
Synapse
⌘+K
Synapse
March 21, 2026Technovation2 citationsOpen Access

The impact investment relationship builder: A new artifact to improve market coordination in social innovation

View Full Paper
PMPablo MuñozSCSuwen ChenJKJonathan Kimmitt

Key Points

  • The research aims to develop and test an artifact that enhances alignment between social ventures and impact investors, addressing coordination problems.
  • Utilized a design science approach to create the impact investment relationship builder artifact.
  • Tested the artifact across three domains: impact, accountability, and revenue.
  • Structured interaction through staged episodes of relational alignment.
  • Established that investment allocation is a dynamic relational process rather than a static threshold.
  • Identified five design principles for constructing investability under uncertainty.
  • Showed co-evolution of impact, accountability, and revenue in investment relationships.

Abstract

Social ventures hold great promise for addressing complex societal and environmental challenges, with impact investors reportedly willing to back them with over US1. 571 trillion in assets to scale social innovation. Yet, despite this growth, many social ventures struggle to translate ambitious impact commitments into sustained investment relationships, risking the collapse of an already fragile bridge between social innovators and impact-oriented capital. This challenge reflects a deeper coordination problem in impact investing, where ventures and investors operate with different evaluative logics, evidentiary expectations, and temporal horizons. Drawing on a design science approach, this paper develops and tests the impact investment relationship builder, a relational coordination artifact designed to support alignment between social ventures and impact investors over time. The artifact structures interaction across three interdependent domains - impact, accountability, and revenue - and guides actors through staged episodes of relational alignment. Rather than treating investability as a fixed threshold or screening outcome, the artifact frames investment allocation as a generative, relational process through which expectations, evidence, and trust are progressively constructed and reassessed. The study contributes to impact investing, entrepreneurial finance, and design science by advancing a relational understanding of investment allocation under conditions of uncertainty and hybrid value creation. • Introduces a relational coordination artifact to support alignment between social ventures and impact investors • Reframes impact investing as a process of ongoing relational alignment rather than a one-off readiness assessment • Identifies five design principles explaining how investability is progressively constructed under uncertainty • Demonstrates how impact, accountability, and revenue co-evolve across investment relationships • Offers a transferable design science contribution for coordinating hybrid value creation in entrepreneurial finance

Ask AI
Helpful
Bookmark
Share
View Full Paper

Cite This Study

Muñoz et al. (2026) studied this question.

synapsesocial.com/papers/69be371c6e48c4981c676750https://doi.org/10.1016/j.technovation.2026.103543
Ask AI
Helpful
Bookmark
Share
View Full Paper