The Effects of Resources on Social Activity and Economic Performance in Social Economy Organizations

Social economy organizations (SEOs) represent the European Union's strong commitment to promoting the creation of welfare, employment, and social cohesion. This article examines the financial management model of these organizations by analyzing the impact of their available resources or capabilities on their economic performance and social activity and the possible mediating effect of their economic dimension as a strategic element in obtaining social achievements. In this study, we analyze 1,400 Spanish SEOs between 2009 and 2012 by using a structural equations model (SEM). Our results reveal that SEOs have their own financial management model that is characterized by the mediating role of economic performance and a high ability to adapt to changes in the environment.