Social value creation converts social capital into social and economic performance in faith based philanthropy

Abstract

This study explains how social resources embedded in a faith‑based, multi‑branch philanthropic system are converted into dual social and economic outcomes by positioning social value creation as the proximal engine and social innovation as an amplifier of social capital within Lazismu Central Java. We conducted a probability‑based random‑sample survey of 485 employees across Lazismu branch offices, applied cross‑cultural instrument procedures and remedies for common‑method bias, and estimated a moderated‑mediation model using partial least squares structural equation modeling with SmartPLS software (version 4.1.0.9) and bootstrapping to test direct, indirect, and interaction effects. Social capital strongly predicts social value creation; social value creation, in turn, predicts both social performance and economic performance; and social innovation strengthens the effect of social capital on social value creation. All hypothesized paths are supported, underscoring the mediating role of social value creation between social capital and both social performance and economic performance, as well as the boundary‑enhancing effect of social innovation. The study reconceptualizes social capital not as a direct driver but as a latent input converted by the routines of social value creation (problem scoping, co‑production, verification and learning), identifies social innovation as a context‑dependent amplifier rather than a substitute, and validates a compact measurement battery for social capital, social value creation, social innovation, social performance, and economic performance in a Global South, faith‑based setting.