Dynamic capabilities in aged care service innovation: the role of social assistive technologies and consumer-directed care strategy

Purpose - By developing a conceptual model, the purpose of this paper is to improve the understanding of the role of social assistive technologies in facilitating the process of service innovation in care providing organisations to adopt the principles of the consumer-directed care strategy and reduce perceived consumer vulnerability. Design/methodology/approach - Using a cross-sectional survey method, the authors collected data through a survey questionnaire distributed among 335 aged caregivers and specialists. The conceptual model and its 11 research hypotheses were examined using confirmatory factor analysis in structural equation modelling. The rival and mediation models were also estimated. Findings - The conceptual model was validated and eight of eleven hypotheses were supported. It was found that dynamic capabilities are crucial to developing service innovation concept in care providing organisations. In this way, social assistive technologies play a facilitating role to promote the consumer-directed care strategy throughout care providing organisations and allow care providers to enhance wellbeing of vulnerable older people based on their socio-economic status. From the lens of aged care providers, it was also found that the consumer-directed care strategy implemented in aged care facilities may help reduce consumer vulnerability among older people especially when they use social assistive technologies in their service settings. Practical implications - This study suggests aged care service providers should boost dynamic service innovation capabilities to improve the need for social assistive technologies in aged care facilities with respect to the importance of the consumer-directed care strategy. Originality/value - This study contributes to the development and validation of a conceptual model for the use of social assistive technologies to sustain service innovation in aged care business models and enhance the consumer-directed care strategy's performance to better understand consumer vulnerability among older people.