Network centrality and performance of social enterprises: Government certified social enterprises in Seoul, South Korea

Abstract

Social enterprises

which have been dramatically increasing all over the world for several decades

are facing the challenge of how best to develop strategies to improve performance and achieve sustainable growth. In South Korea

the government has supported active networking among social enterprises as a tactic for overcoming insufficient material and human resources. However

it is unclear whether active networking activities among social enterprises are associated with higher performance. In this study

a network survey of certified social enterprises (n = 78) in Seoul

South Korea was conducted. Multivariate regression models examined whether degree centrality

closeness centrality

and betweenness centrality were associated with the economic and social performance of social enterprises after controlling for organizational factors. The results revealed that a social enterprise with higher degree centrality in the network of regular meetings achieved higher social and economic performance.