Understanding the impact of learning orientation and the mediating role of new product development capability on social enterprises' performances

Abstract

PurposeSocial enterprises (SEs) offer a unique context as they have the challenge of finding solutions that not only improve their economic performance but also their social performance, simultaneously. The purpose of this paper is to investigate whether learning orientation and new product development capability can support SEs to enhance both their economic and social performances.Design/methodology/approachA quantitative research design has been employed and data have been collected from a sample of 164 SEs in the UK.FindingsThe findings of this study illustrate that if SEs want to enhance their economic performance, they should ensure that learning orientation leads to new product development capability. Otherwise, learning orientation cannot improve their economic performance. However, surprisingly, learning orientation can impact SEs' performance not only by developing new product development capability but also by having a direct impact on their social performance.Originality/valueThis article contributes to the social entrepreneurship literature by illustrating the role of learning orientation and new product development capability in enhancing the economic as well as the social performance of SEs.