The impact of business model workforce configurations on value creation and value appropriation in the Australian aged care sector

Author:

Brown David A,Ma Nelson,Yang Jin Sug,Sutton Nicole,McAllister Gillian1,Parker Deborah2ORCID,Rawlings-Way Olivia1,Lewis Rachael L3ORCID

Affiliation:

1. UTS Business School, University of Technology Sydney, Ultimo, NSW, Australia

2. Faculty of Health, University of Technology Sydney, Ultimo, NSW, Australia

3. UNSW Business School, UNSW Sydney, Sydney, NSW, Australia

Abstract

This article examines the influence of business model workforce configurations on value creation and capture in a skills-based service setting, extending previous research on business model performance. We investigate workforce configurations (higher versus lower stability and skills) and value creation and appropriation in aged care organisations. More skilled and stable workforces are associated with greater value creation but not appropriation, while less skilled and less stable workforces are associated with lower value creation and higher appropriation. This informs a substantive challenge in delivering value creation while ensuring financially viable business models in a sector with significant consequences for quality failure. JEL Classification: J24 - Human Capital • Skills • Occupational Choice • Labor Productivity; L2 - Firm Objectives, Organization, and Behavior; M12 - Personnel Management; I11 - Analysis of Health Care Markets

Publisher

SAGE Publications

Subject

General Business, Management and Accounting

Reference90 articles.

1. Aged Care Financing Authority (2019) Sixth report on the funding and financing of the aged care sector – July 2018. Report, Australian Government Department of Health, Canberra, ACT, Australia, July.

2. Aged Care Financing Authority (2020) Eighth report on the funding and financing of the aged care industry – May 2020. Australian Government Department of Health, Canberra, ACT, Australia, June.

3. Aged Care Workforce Strategy Taskforce (2018) A matter of care: Australia’s aged care workforce strategy. Report, Australian Government Department of Health, Canberra, ACT, Australia, June.

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