Chapter 14: A Study on the Development of the Social Value Performance Measurement Model: Using the Case of Korean Public Enterprises

The purpose of this study is to present the methodology by which public enterprises with different characteristics of mission and business can develop social value measurement models and establish the importance of each indicator. Incheon International Airport Corporation (IIAC), a case study company, is Korea’s leading public company and the third largest international freight-handling company. IIAC operates an international airport that is used by 68 million people annually and has collaborated with more than 600 partners. Firstly, this study reviewed the strategy/mission of IIAC and analyzed 68 recent innovation tasks. In the second step, social value stakeholders were defined. As a third step, this research developed a social value measurement model by extracting input, process, output, and outcome indicators from 68 innovation tasks using the Logic Model. As a fourth step, the social value measurement model was described to social value stakeholders and components and weights were determined using the AHP methodology.

In this study, a social value measurement model consisting of five indexes and forty indicators was developed. The upper five indexes are as follows: (1) job creation, (2) equal opportunities and social integration, (3) safety and environment, (4) win–win cooperation and regional development, and (5) ethical management. The study showed that safety and the environment were important more to partner firms and airport customers than to internal employees.

This study suggests a social value measurement model that can be used to determine how much social value performance public enterprises are generating, and how the resources should be optimized to maximize social value performance in future.