‘SIB’: what does it really mean? A theoretical approach to understanding social impact bonds

IMPACT

SIBs are a relatively new research field. Building on the contributions to the 2020 theme issue of Public Money & Management on SIBs, this paper helps policy-makers to be more aware of the potential and downsides of SIBs. The authors provide policy-makers and public sector managers with the tools to assess a SIB design.

ABSTRACT

A new field of interest in the study of the creation of public value is how Social Impact Bonds (SIBs) can lead to collaborative relationships generating public value. This paper frames SIBs in public management studies and provides an analytical tool to assess the feasibility and chances of success of a new SIB. The authors have developed a model that shows the key variables in a SIB, their interactions and the conditions needed for a SIB to co-create value.

KEYWORDS:

• Public value
• social finance
• Social Impact Bonds (SIBs)
• social impact investing
• value creation

Disclosure statement

No potential conflict of interest was reported by the authors.