International Journal of Research Studies in Management
CollabWritive Special Issue
2024 Volume 12 Issue 1
Available Online: 2 March 2024
Author/s:
Wang, Fengyun
Graduate School, Lyceum of the Philippines University – Batangas, Philippines
Abstract:
The landscape of elderly care is rapidly evolving, with rising demand and shifting expectations. Traditional service models often struggle to provide personalized, high-quality care while ensuring financial sustainability. This paper delves into the potential of dynamic capabilities, value co-creation, and business model innovation as potent tools for elderly care service companies to enhance their performance and thrive in this dynamic environment. By exploring how these concepts can be intertwined, a framework was developed that serves as a roadmap for service companies to navigate the complexities of the elderly care market and achieve sustainable success. This paper determined dynamic capability of the company in terms of adaptive capability, innovativeness and entrepreneurial capability; described value creation in terms of customer involvement, customer knowledge and business resources; determined business model innovation according to value proposition innovation, revenues resources and key resources; test the significant relationship between dynamic capability, value co-creation and business model innovation; and develop a framework that will improve the performance of elderly care service companies in China. The study used a quantitative research design and a survey questionnaire was used to collect data from 400 sample of customers of elderly care service companies. The data was analyzed using descriptive statistics, correlation analysis. The findings showed that the respondents moderately assessed the company’s adaptive capability, innovativeness, and entrepreneurial capability, they generally concurred that value creation is evident in customer involvement, customer knowledge, and business resources and generally acknowledged that business model innovation manifests in value proposition innovation, revenue streams, and key resources. It was also revealed that dynamic capability is a strong predictor of value creation. This means that firms that are able to develop and maintain dynamic capabilities are more likely to create value for their customers. Dynamic capability is also a strong predictor of business model innovation. This means that firms that are able to develop and maintain dynamic capabilities are more likely to innovate their business models. While business model innovation is a strong predictor of value creation. This means that firms that are able to innovate their business models are more likely to create value for their customers. This finding is intuitive, as business model innovation is often about developing new ways to create and deliver value to customers.
Keywords: dynamic capability, value co-creation, business model innovation, elderly care service companies
DOI: https://doi.org/10.5861/ijrsm.2024.1009
Cite this article:
Wang, F. (2024). Dynamic capability, value co-creation and business model innovation of elderly care service companies: Basis for performance improvement framework. International Journal of Research Studies in Management, 12(1), 111-118. https://doi.org/10.5861/ijrsm.2024.1009