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Social 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.

A quantitative research design has been employed and data have been collected from a sample of 164 SEs in the UK.

The 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.

This 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.

Literature on the relationship between social performance and economic performance of social enterprises has long been inconclusive. This paper aims to investigate whether and, if so, how social performance contributes to economic performance of social enterprises. Specifically, drawing from the resource-based view and signalling theory, the study examines how the development of reputation, which enables social enterprises to signal the enterprises' stakeholders' commitment towards social causes, mediates the relationship between the two.

Employing a quantitative research design, data were collected from a sample of 164 social enterprises in the UK and analysed using structural equation modelling (SEM).

The results illustrate that whilst the direct relationship between social and economic performance is inconclusive, social performance contributes indirectly to improve economic performance through improving social enterprise reputation.

To the best of the authors' knowledge, this study is the first of this kind in the context of social enterprises which sheds light on the long-standing conflicting literature on the relationship between the dual objectives (i.e. social and economic) by providing reputation as the mediating variable.