The influence of social impact bonds on public–private partnership success : the case of higher education

Abstract

Purpose: How can public–private partnerships (PPPs) financed by social impact bonds (SIBs) achieve measurable indicators of social success within a short time? We undertake this research to find simple, reliable indicators of social success resulting from PPPs. Design/Methodology/Approach: We statistically analyze data from all SIB-financed projects worldwide in the areas of education and training, using a logistic mixed effect model. In addition, we use an alternative approach to analyze the predictors of outcome success within homelessness projects, as they offered the most complete set of information. Findings: We prove that the vast majority of problems associated with issuing SIBs globally relate to the measurable quantification of positive social impacts. Practical Implications: We propose a public policy for financing higher education with SIBs where appropriate, wherein countable results are achieved as soon as the cooperation starts and each stakeholder gains. Originality/Value: Our proposed solution ensures a trade-off between profitability and immediate social effect among all partners.