Conceptual Model for Assessing Sovereign Wealth Fund Investments in the Healthcare Sector: Development and Validation

Sovereign Wealth Funds (SWFs), initially established as stabilization mechanisms for resource-rich nations, have evolved into strategic investment instruments addressing economic stability and global socio-economic challenges, including healthcare financing. Despite their vast financial resources and long-term investment horizons, SWF investments in healthcare often lack structured frameworks that align with host country governance, economic priorities, and healthcare needs. Existing literature provides limited guidance on optimizing SWF healthcare investments to achieve both financial sustainability and socio-economic impact. This study addresses this gap by developing and empirically validating a conceptual model that integrates SWF investment strategies, host country governance quality, economic classifications, and healthcare priorities. Using Agency Theory as the theoretical foundation, this research employs a qualitative case study methodology, analyzing six SWFs operating in factor-driven, efficiency-driven, and innovation-driven economies. The findings emphasize that economic classification significantly influences SWF investment strategies, requiring tailored healthcare funding approaches: Factor-driven economies benefit from foundational infrastructure investments, efficiency-driven economies require scalable delivery models, and innovation-driven economies prioritize technological advancements. Beyond economic classification, the host country’s governance quality plays a crucial role in shaping SWF investment outcomes. Strong governance environments enable alignment with national healthcare priorities, ensuring transparency and impactful investments, while weak governance necessitates adaptive strategies to mitigate risks. Additionally, multi-stakeholder collaboration, including partnerships with governments, private sector entities, and healthcare providers, enhances SWFs’ ability to achieve both financial returns and sustainable healthcare impact. This study makes significant theoretical, methodological, and practical contributions. Theoretically, it extends Agency Theory by incorporating governance quality and stakeholder collaboration as moderating factors in SWF decision-making. Methodologically, it develops a replicable framework for assessing SWF investments in healthcare across diverse economic and governance contexts. Empirically, six case studies demonstrate how SWFs can navigate the complexities of healthcare investment while balancing financial and social objectives. Practically, it provides actionable recommendations for SWF managers and policymakers, offering a structured approach to optimizing healthcare investment strategies in alignment with national healthcare priorities. By offering a systematic, empirically validated framework, this research advances academic discourse and policy implementation, ensuring that SWFs play a more strategic role in strengthening global healthcare systems. By bridging financial and socio-economic objectives, the study presents a roadmap for leveraging SWFs as catalysts for healthcare resilience, equity, and long-term sustainability worldwide.