Expanding the Concept of Social Impact Bonds

Abstract

This article elaborates on the emerging concept of social impact bonds (SIB) by investigating the configuration of a SIB in a new empirical setting – Scandinavia. The analysis is based on a single case study of a SIB-development project in Denmark, which constitutes the first attempt to build a social impact bond in the country. The article investigates four elements of the SIB-model: 1) the configuration of roles and responsibilities, 2) service provision, 3) payment structure, and 4) evaluation. The findings show the existence of blurred boundaries between organisational stakeholders within the investigated SIB-programme, indicating a dynamic configuration of roles and responsibilities. Furthermore, both service provision and data collection procedures were conducted in close collaboration with the involved public authorities, implying an interdependent relationship between public authorities and external partners. Thus, the empirical findings indicate a divergence from traditional concepts of social impact bonds – specifically concerning their design and development. Empirical evidence has been collected through interviews, statistical data, and internal documents.

Keywords:

• Social impact bonds
• pay for success
• public management
• public innovation
• payment by results

Disclosure statement

No potential conflict of interest was reported by the author(s).