Unveiling different trajectories for impact measurement in sustainable ventures

A new research paper by leonardo’s Co-Founder and CEO Dr. Jan Moellmann, co-authored with Dr. Esther Salvi from the International Institute for Management Development (IMD) and Prof. Dr. Frank-Martin Belz from TU München (TUM) uncovers how Impact measurement (IM) evolves within real-world sustainable ventures – and how that evolution reshapes what these ventures sell, how they grow, and the legitimacy they build along the way.

The paper, Impact Measurement as a Process: Unveiling Different Trajectories in Sustainable Ventures, has been nominated among the best papers of 2025 by the Academy of Management (AOM) and will be presented this July at AOM’s 85th Annual Meeting in Copenhagen – the world's premier event for scholarly engagement, and the largest gathering of management and organization scholars in the world.

Let’s take a closer look at what this study reveals, why it matters, and how it challenges conventional thinking around measuring impact.
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Why this study matters

Impact measurement is now widely expected in social and environmental ventures. But despite its growing importance, most research treats IM as a binary capability – something an organization either does or doesn’t do.

The authors offer a different view. Based on a 24-month longitudinal study of six sustainable ventures in Germany, their work shows that IM is not static – it is a dynamic process. Founders do not simply “adopt” impact measurement. Instead, they move through different stages, make strategic choices, and often use IM to shape both internal operations and external legitimacy.
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A process perspective on measuring impact

Drawing on entrepreneurial agency theory, the authors map how ventures differ in the degree to which they shape – rather than simply respond to – stakeholder expectations around impact.

Using a prospective multiple-case study design and grounded theory methodology, they followed six German startups across sectors like health, mobility, and plastic recovery. The study included:

• 39 semi-structured interviews
  
  
• 271 pages of internal documentation
  
  
• Over 1,700 pages of public materials
  
  
• A two-year timeline allowing the authors to observe real pivots, not just retrospective narratives

The result: a grounded framework that uncovers three distinct trajectories of impact measurement – and their long-term implications for business models.
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How impact measurement evolves and transforms the business of sustainable ventures

At the heart of this study lies a powerful insight: impact measurement is not a one-size-fits-all practice. Instead, it evolves along three distinct trajectories, each representing a different level of agency and strategic engagement. These trajectories not only define how measurement is conducted — they also reshape how ventures create and communicate value.
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1. Reactive impact measuring

Agency stance: Conformist (low agency)
Typical path: Ventures begin impact measurement only when externally pressured, especially by investors. They:

• Overlook or deprioritize impact monetization
  
  
• Respond reactively to compliance needs
  
  
• Use improvised or ad-hoc metrics (e.g., arbitrary multipliers)

Here, impact plays only a marginal position in the business model: metrics appear only in investor documents, and the business model remains focused on functional service delivery.
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2. Pro-active impact measuring

Agency stance: Opportunity-seeking (moderate agency)
Typical path: Ventures begin to see upside in impact measurement. They:

• Identify new sales or funding potential linked to credible metrics
  
  
• Anticipate stakeholder expectations before they are explicit
  
  
• Commission external validation (e.g., life cycle assessments, mixed-method studies)
  

In these ventures, impact becomes relevant to the value proposition: a clear, measurable benefit layered onto the core product.
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3. Agentic impact measuring

Agency stance: Institution-shaping (high agency)
Typical path: Ventures embed impact at the centre of their strategy. They:

• Invent new revenue models built around impact (e.g., plastic credits)
  
  
• Practise radical transparency, proactively raising stakeholder expectations
  
  
• Develop tech-enabled systems like blockchain verification and ML-powered traceability

In these cases, impact is core to the value proposition: it is not just part of the product; it is the product. These ventures deliver “impact-as-a-service” and often export their verification tools to partners or sector peers.

In essence, the way ventures measure impact ultimately reshapes what they sell. What begins as a reporting task can become a driver of product design, pricing, market positioning, and even ecosystem change.

A forward-looking vision for impact

The presented paper offers not only a theoretical framework (see figure 1) but also concrete guidance for practitioners and funders shaping the future of impact entrepreneurship and impact measurement.

• For founders, the three trajectories provide a useful diagnostic tool. Ventures can locate themselves along the reactive–proactive–agentic spectrum and plan their next steps accordingly – whether that means upgrading internal data systems, investing in third-party validation, or rethinking how impact features their business model.
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• Investors and accelerators can use the framework to tailor their support more effectively. Pro-active ventures may benefit from funding for lifecycle assessments or randomized control trials, while agentic ventures might require deeper backing for tech-enabled verification infrastructure or ecosystem-wide experimentation.

More broadly, this study marks an important shift: from viewing impact measurement as a reporting obligation to understanding it as a strategic capability that evolves with the business. It challenges founders to use IM not just to meet expectations, but to shape them.

If you're attending AOM 2025 in Copenhagen, don’t miss Prof. Dr. Frank-Martin Belz presentation of the paper.
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And if you're working to translate these insights into innovative tools and systems — that’s exactly what we’re building at leonardo. impact
‍Feel free to reach out — we’re always happy to share ideas, exchange perspectives, and collaborate on the future of impact.