An Exploratory Study on Performance Indicators of Arts and Cultural Social Enterprises

Abstract

Arts and cultural social enterprises are organizations that create diverse social values through cultural activities. This study aims to explore performance indicators for arts and cultural social enterprises to enhance our understanding of their performance and investigate their sustainability. To this end, we reviewed and synthesized literature on arts and cultural social enterprises both domestically and internationally, focusing on the Social Value Index (SVI) and the Art & Culture Social Performance Evaluation Model (ARC-SPEM) currently in use. This synthesis informed the proposal of new performance indicators spanning social, economic, and artistic dimensions. Subsequently, a survey among arts and cultural social enterprise experts and a hierarchical analysis process (AHP) were conducted. The analysis highlighted the relatively recognized importance of social performance indicators compared to economic and artistic ones. ‘Cultural welfare and appreciation’ and ‘arts and cultural education’ emerged as priorities in the social dimension; ‘providing jobs for artists’ was prominent in the economic dimension; and ‘art as a social activity’—which employs art to generate diverse values— was underscored in the artistic dimension. However, a case study on the current performance measurement practices of arts and cultural social enterprises in Korea revealed inconsistencies in the criteria, terminology, and categories used across organizations, along with a lack of comprehensive quantitative and qualitative data for appropriate performance assessment. We conclude that to ensure the sustainability of arts and cultural social enterprises, it is crucial to concurrently consider the peculiarities of art jobs, donations and sponsorships, service-oriented activities, and genre-specific value chains from social, economic, and artistic perspectives. Furthermore, artistic performance indicators not only impact artistic outputs but also influence social and economic outcomes, highlighting the need to acknowledge each organization’s unique artistic nature. This study’s significance lies in its systematic and comprehensive identification of performance indicators, acknowledging the unique attributes of arts and cultural social enterprises. It provides a foundation for revisiting previously overlooked performance metrics and facilitates communication with various stakeholders by introducing new artistic performance indicators tailored to the arts and cultural sector.