Social Value Creation and Economic Performance in Social Economy Organizations: How Social Enterprise Values and Organizational Characteristics Affect Organizational Effectiveness

Abstract

Purpose: This study examines how the social problem domains pursued by social economy organizations influence their economic performance in South Korea. As organizations adopt diverse missions, identifying domain-specific variation is essential for assessing how social value creation relates to financial sustainability. Research design, data and methodology: Using data from 2,007 social ventures and nonprofit organizations (NPOs), we analyze how mission domains, regional contexts, and organizational characteristics shape sales revenue and operating profit. Multiple regression models estimate the effects of job creation, economic growth, education, sustainable consumption, and health-related domains. Results: Organizations focusing on job creation and economic growth demonstrate higher sales revenue and operating profit, while the health sector has positive effects. In contrast, domains emphasizing long-term social value, including education and sustainable consumption, do not yield significant short-term financial gains. Regional disparities remain notable, with capital region organizations outperforming provincial counterparts. NPOs show lower economic performance than social ventures, and organizational maturity positively correlates with outcomes. Results highlight domain-specific differences in market alignment. Conclusions: The study provides evidence on how Creating Shared Value operates in Korea’s social economy and underscores the need for differentiated policy support. Strategic domain choices, regional ecosystem development, and life-cycle-based assistance are essential for achieving sustainable social and economic outcomes.