Theorising intermediation in social impact investing: exploring Wenger’s communities of practice (CoP)

This thesis contributes to social studies of accounting and finance, and practice theory literatures by experimenting with concepts from the Communities of Practice (CoP) to explain intermediation practices in the Social Impact Investing (SII) sector. The research on actors in SII is growing as a separate field of academic enquiry. However, there is limited research that looks at SII intermediaries and their practices separate from conventional financial intermediaries. I have undertaken a sociological investigation of the intermediation and valuation practices of impact investment intermediaries and how they tackle the complexity of value plurality in terms of social and financial investment outcomes. I have explored a particular aspect of Wenger’s CoP theory by examining and explaining the practices of intermediaries with the notion of inter-organisational Communities of Practice. I contribute to the literature on communities of practice by focusing on (a) conceptualising intermediation as a practice and intermediaries as creating communities of practice (b) the role and use of accounting artefacts in intermediation practices and (c) the valuation and evaluation practices of intermediaries. This study has implications for accounting studies, showing how intermediaries play a critical leading role in SII by constructing and disseminating knowledge about valuation. I found that intermediaries find the duality of outcome as the most difficult aspect of valuation in SII. The findings also highlight the role of social value measurement tools and the importance of cross–boundary collaboration to build meaning within them. The contribution of this empirical analysis lies in its underpinning of the role of intermediaries as boundary–spanners that leads to the effectiveness of cross–boundary knowledge sharing. Intermediaries are performing the role of facilitators who connect problems to solutions and mobilise resources and effort in the search for successful outcomes. While the participants in the SII sector are immersed in creating and/or enhancing measurement tools, the success of these tools depend on the diverse stakeholder participation and the actors' ability to manage outcome environments through negotiation and knowledge brokering. I use data from a field study using interviews and documentary analysis to investigate how community-like practices shape the impact investing market. The role of intermediaries is then conceptualised as boundary–spanners producing and using boundary objects in the production and modification of practices of intermediation. This research also discovers factors that emphasise participation, learning, and collaboration in inter-organisational communities of practice. Finally, the thesis also contributes to the practice theory literature by identifying and attempting to clarify and/or improve the under-researched and underdeveloped concepts of Wenger’s CoP framework in the context of inter-organisational participation and learning.