Exploring social CRM capabilities, innovation and operational efficiency in driving social enterprise performance

Purpose The purpose of this study is to (1) explore how social customer relationship management (social CRM) capabilities–defined as the strategic use of social media and technologies to manage customer interactions and relationships–influence the performance of social enterprises and (2) analyze the mediating roles of innovation and operational efficiency in this relationship. Design/methodology/approach Data were collected through a survey involving 151 Korean social enterprises registered with the Korea Social Enterprise Promotion Agency. Structural equation modeling (SEM) using Amos 22.0 was employed to test the hypotheses, and a bootstrapping analysis was conducted to validate the mediating effects. Findings The study obtained several noteworthy findings. First, there was no significant direct impact of social CRM capabilities on social enterprise performance. Second, social CRM capabilities were confirmed to positively affect both innovation and operational efficiency, with a stronger effect on innovation. Third, both innovation and operational efficiency positively influenced performance, with innovation having a more pronounced impact. Finally, regarding mediation effects, social CRM capability influenced firm performance through two significant pathways: one via innovation and the other via efficiency. Originality/value This research provides empirical insights into how social CRM capabilities function within Korean social enterprises, focusing on their role in driving performance through innovation and operational efficiency. By integrating dynamic capability theory with the business model perspective, this study highlights that social CRM capabilities alone are insufficient to directly improve performance. Instead, these capabilities should be strategically employed to foster both innovation and operational efficiency, each of which significantly contributes to improved performance outcomes. These findings also suggest that aligning social CRM capabilities with strategies that enhance innovation and efficiency is crucial for sustainable growth.