South Korean social enterprises and their networks: On their organizational linkages at the interstice between the third, public, and corporate sectors

Abstract

AbstractSocial enterprise and government interactions have become an increasingly prominent theme in the literature on social entrepreneurship, due in part to the pressures confronting the welfare state and the rise of precarious work. This analysis is motivated by the efforts of the government of South Korea to incubate social enterprises since 2007. The constant scaling of the South Korean government's monitored social enterprise certification scheme had led to the registration of approximately 3440 social enterprises as of May 2021. This study documents the interorganizational network behaviour of these enterprises relative to the public sector, corporate sector, and civil society and the social economy. A cluster analysis approach is utilized to analyse network data obtained from a self‐administered survey of 103 government‐certified social enterprises operating in South Korea. We find that a sizeable number of government‐certified social enterprises have diversified networks, as opposed to public sector‐centric networks, although such social enterprises are in the minority. This study references social innovation cluster theory to argue that the aforementioned scheme has attained a partial degree of success in facilitating the emergence of social enterprises with diversified networks.However, the majority remain quasi‐governmental implementers of government contracts and, generally, do not engage in networking.