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Critical Success Factors, Motivations, and Risks in Social Impact Bonds

Author

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  • Rosella Carè

    (Department of Economics and Business, University of Cagliari, 09124 Cagliari, Italy)

  • Francesco Rania

    (Department of Law, Economics and Sociology, University Magna Graecia of Catanzaro, 88100 Catanzaro, Italy)

  • Riccardo De Lisa

    (Department of Economics and Business, University of Cagliari, 09124 Cagliari, Italy)

Abstract

Social impact bonds (SIBs) have emerged as one of the most innovative financial instruments designed to support the social service sector in the delivery of innovative social programs. Despite the growing interest of academics and practitioners in SIBs, the debate appears polarized around a series of recurrent aspects, and only a limited number of studies have sought to understand the risks and motivations related to similar initiatives. Using an exploratory approach based on a mixed-method grounded theory methodology, this study analyzed the results of 12 questionnaires that asked experts about their experiences and perceptions in SIB project development and implementation. The study identified and assessed three main groups of motivations, critical success factors, and risk factors by focusing on the private-sector SIB actors with the aim of understanding their motivations and their perceived main success drivers and risk factors. This work contributes to the knowledge on the conditions for attracting private sector actors and supporting policymakers in the development of new SIB models. The findings could facilitate the development of risk management practices for the purpose of stimulating the participation of private actors in SIB initiatives.

Suggested Citation

  • Rosella Carè & Francesco Rania & Riccardo De Lisa, 2020. "Critical Success Factors, Motivations, and Risks in Social Impact Bonds," Sustainability, MDPI, vol. 12(18), pages 1-17, September.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:18:p:7291-:d:409468
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    References listed on IDEAS

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    1. Alessandro Rizzello & Rossana Caridà & Annarita Trotta & Giuseppe Ferraro & Rosella Carè, 2018. "The Use of Payment by Results in Healthcare: A Review and Proposal," Palgrave Studies in Impact Finance, in: Mario La Torre & Mario Calderini (ed.), Social Impact Investing Beyond the SIB, chapter 4, pages 69-113, Palgrave Macmillan.
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    4. Francesco Rania & Annarita Trotta & Rosella Carè & Maria Cristina Migliazza & Abdellah Kabli, 2020. "Social Uncertainty Evaluation of Social Impact Bonds: A Model and Practical Application," Sustainability, MDPI, vol. 12(9), pages 1-34, May.
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    2. Ximena Cadena & Norberto Rojas & Sandra Zuluaga & María José Mejía & Alejandro Garavito, 2021. "Evaluación de procesos Bono de Impacto Social II “Cali Progresa con Empleo”," Informes de Investigación 19955, Fedesarrollo.
    3. Rosella Carè & Stella Carè & Nathalie Lévy & Rabia Fatima, 2023. "Missing finance in social impact bond research? A bibliometric overview between past and future research," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(5), pages 2101-2120, September.
    4. Dyi-Cheng Chen & Der-Fa Chen & Shih-Ming Huang & Mu-Jung Huang & Wen-Jye Shyr & Chien-Fu Chiou, 2021. "Critical Success Factors to Improve the Business Performance of Tea Drink Chains," Sustainability, MDPI, vol. 13(16), pages 1-15, August.

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