The Effects of Social Economy Organizations’ Networks on Social Innovation in Local Communities: A Multilevel Analysis Using the Social Innovation Index

Abstract This study examines the impact of social economy organizations’ networks on social innovation in local communities. A Social Innovation Index, covering the input, process, and output phases of innovation, was developed using 2020 data from South Korea to assess the extent of social innovation at the local level. Utilizing this composite index, the research explores how collaborative efforts between social economy organizations and the local government, as well as the networks that social economy organizations have with other local entities, influence social innovation. The micro–macro multilevel analysis shows that, at the local level, collaboration between social economy organizations and local government enhances social innovation. However, at the organizational level, membership in social economy associations and stronger networks with state-owned enterprises have a negative effect on social innovation.